Tenax Therapeutics' (TENX) CEO John Kelley on Q3 2015 Results-Earnings Call Transcript.
Debit the cost of the asset and credit the loan account with the capitalized interest. In the example, debit the asset cost and credit the loan account with $50,000. The asset cost available for depreciation at the end of Year One is therefore $1,050,000. Debit the interest expense account and credit the loan account with any interest paid in excess of the interest capitalized. For example, if the total interest paid in the first year was $75,000, debit the interest expense account and credit the loan account with $75,000 minus $50,000, or $25,000.
Debit comes from debere, which means to owe. The Latin debitum means debt. Credit comes from the Latin word credere, which means to believe. ________________________________________________________. Debit is abbreviated Dr., while credit is abbreviated Cr.Debit also refers to the left side of a general ledger account, while Credit refers to the right side.ebit comes from debere, which means to owe. The Latin debitum means debt. Credit comes from the Latin word credere, which means to believe. ________________________________________________________. Debit is abbreviated Dr., while credit is abbreviated Cr.