Understanding Debit and Credit

In double entry book keeping system two very concepts which always hinder the students are debit and credit (abbreviated Dr and Cr, respectively). Let’s try to familiar with these two.
 These two words are driven from the Latin words debere (to owe) and credere (to entrust) which became debit and credit in the English. Now, coming to the point, let’s try to understand meaning of these two. Basically, whatever transaction we do, have two opposite effects, one is something for what we receive and other one is for something that we give. As in arithmetic there are two basic signs ‘plus’ and’ minus’. Like this in double entry book keeping these are two sign. For simplicity assume debit is plus and credit is minus. Take an example, suppose we purchased a mobile handset of Rs. 10000, in this case we are benefited (plus) with mobile handset of worth Rs. 10,000 on one side, on other side we have to gave up (minus) money of Rs.10,000. In double entry system what benefit we receive is debited while what benefit we gave is credited. This seems to be simple, because this is cash transaction of two tangible things. But, if the transaction is on credit basis, and of some intangible services and/or debt promises then this approach may be unsuitable. In such situation we required to extend our approach as whatever benefits we already received or are receiving or  will receive is to debited and whatever benefits we already given or are giving and will give is to be credited. Benefits may be things (assets including cash), services (expenses or incomes) and debt promises (capital, debtors, creditors).