The bank is the lender and the applicant is the borrower.

The debit and credit accounting method refers to a double-entry accounting method that uses accounting equations as the accounting principle and debits and credits as accounting symbols to reflect the changes in economic business. With the development of the commodity economy, the debit and credit accounting method has been widely used. The object of accounting is no longer limited to creditor's rights and debt relationships, but has been expanded to record the changes in property and materials and calculate operating profits and losses.

Account structure

Under the debit and credit accounting method, the structure of all accounts is with debits on the left and credits on the right, but debits and credits reflect the increase or decrease in the number of accounting elements. The nature is not fixed. Accounts of different natures have different contents registered by the borrower. The structure of each type of account is explained below.

(1) Structure of asset account

In an asset account, its debit side records the increase in assets, and its credit side records the decrease in assets. In the same accounting period (year, month), the total amount recorded on the debit side is called the debit amount for the current period, and the total amount recorded on the credit side is called the credit amount for the current period. At the end of each accounting period, the debit side amount is compared. , the difference is called the ending balance. The ending balance of an asset account is generally on the debit side.

The closing balance of the asset account can be calculated according to the following formula:

Ending balance (debit) = opening balance + debit amount for the period + credit amount for the period

(2) The structure of liability accounts and owner’s equity accounts

The structure of liability and owner’s equity accounts is exactly the opposite of that of asset accounts. The creditors record the increase in liabilities and owners’ equity. The debit side records the decrease in liabilities and owner's equity, and the ending balance should generally be on the credit side.

The closing balance of liability accounts and owner's equity accounts can be calculated according to the following formula:

Ending balance (credit) = opening balance + credit amount for the period + debit amount for the period Amount incurred

(3) Structure of cost and expense accounts

The structure of cost accounts is basically the same as that of asset accounts. The debit side of the account records the increase in expenses and costs. The amount of the expense cost recorded by the credit side is transferred to the offset income account (decrease). Since the increase in the expense cost recorded by the debit side is generally transferred out through the credit side, the account usually has no balance. If there is a balance, it is also expressed as a debit balance.

(4) Structure of income account

The structure of income account is basically the same as that of liability account and owner’s equity account. The increase in income is recorded in the account The credit, the income transfer (decrease) should be credited to the debit side of the account. Since the increase in income recorded by the credit is generally transferred out through the debit side, the account usually does not have an ending balance. If there is a balance, it will also appear as a credit balance.