The phrase "Debit what comes in and credit what goes out" is one of the fundamental principles of double-entry bookkeeping. It helps in recording financial transactions accurately. Here's what it means:

1. **Debit what comes in**:
- When an asset or resource enters the business, it is recorded as a debit. For example, if a business purchases furniture, the furniture account (an asset account) is debited because the furniture is now part of the company's assets.

2. **Credit what goes out**:
- When an asset or resource leaves the business, it is recorded as a credit. For example, if the business sells an old piece of equipment, the equipment account is credited because the asset is no longer part of the company's possessions.

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Note added at 6 hrs (2024-07-03 13:22:25 GMT)
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Note added at 3 days 10 hrs (2024-07-06 17:36:36 GMT)
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