Credit and Debit - Definition, Real life examples [Integer Example] - Credit and Debit

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Credit and Debit Understanding Integers with Credits & Debits Suppose you open a bank account with ₹100. Your balance starts at +100 . You deposit earnings of ₹60. This is a 'credit' (a positive number). New Balance: ₹100 + ₹60 = ₹160 You pay an electric bill of ₹30. This is a 'debit' (a negative number). New Balance: ₹160-₹30 = ₹130 You make a large business purchase of ₹150. This is another 'debit'. New Balance: ₹130-₹150 = -₹20 Yes, your balance can be negative! This is like an 'overdraft'. Your business is successfull You make ₹200. This is a 'credit'. Final Balance: -₹20+₹200=₹180 Your Balance Journey Key Idea: 'Credits' are positive integers (+) that increase your balance. 'Debits' are negative integers (-) that decrease your balance. Your final balance is the sum of all these integers!

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 15 years. He provides courses for Maths, Science and Computer Science at Teachoo