What is the meaning of account debited and account credited in bank statement?

When you deposit cash in your bank account you get a SMS that your account is credited by so and so ..... There is a rise in your balance but, why the bank statement showing credit balance instead of debit?

This is the first question that arise in your mind. But don't worry, you are in the right platform. Today, I am gone to disclose the secret behind this, that most people are not aware of. 

You all know, in accounting

# Increase in assets are debited 

# Increase in liabilities are credited

Still , when you heard the opposite working of the  balances in bank statement or pass book

you must have come across doubt that surrounds

your mind and this is how your mind become 

so curious to know the secret. So, to make you understand in a better way I am gone to discuss an illustration.

Illustration 1:- Ram deposit Rs 1000 in bank  account.                                                         

                                   In the books of Ram 

                              Bank a/c Dr.         Rs 1000

                                    To cash a/c                    Rs 1000

Here, bank account is debited as increase in assets of Ram and cash account is credited as decrease in another asset. Bank also maintain an account of the account holder and record transactions done by the account holder. A copy of it is also given to the account holder in the form of a statement known as pass book.

So,                

                                              In the books of bank

                                      Cash a/c Dr.                             Rs 1000

                                               To account holder a/c                   Rs 1000

Here , cash account is debited as increase in cash but the account holder's account is credited because this income is not earned by the bank, therefore it is an unearned income. Unearned income is a liability for any business as they get money in advance and for this they have to do some work and return Rs 1000.

Similarly, consider the illustration 2 for crystal clearance.

Illustration 2:- Bank charges are deducted by the Bank.

                            In the books of Ram

                            Bank charges a/c Dr.   Rs 100

                                         To Bank a/c.                  Rs 100

In the above example , Bank charges are debited as this is an expanse for the business whereas Bank account is credited due to decrease in asset or cash in the bank.

Now,  

                             In the books of Bank

                        Account holder a/c Dr.          Rs 100

                               To service charges a/c              Rs 100

Here, account holder's account is debited because this income is earned by the bank for rendering services and this changes are the revenue for the bank therefore service charges account is credited .

So , whenever you come across this terms do remember that depositing cash or cheque in the bank is an asset for us and liability for the bank as customer deposit owed to them .