What is CR in Bank Statement?

CR in financial terms means credit. So to answer the question what is CR in Bank Statement, CR when placed beside a monetary amount in a bank statement means that there has been a credit of money in the bank account. This means that money has been added to the account.

In bookkeeping and accounting, CR or Credit means a general ledger account with an entry on the right side. Credit entries increase the credit balance on the liability side and decrease the debit balance on the asset side. Credit may also refer to letters of credit, credit ratings, lines of credit, and so on.

A bank statement is referred to as a copy of our accounts in the Bank’s book. When we deposit money in the bank, we become the creditor or lender to the bank and any entry which increases the credit balance will be called credit. The most important thing about a bank statement is that it is the accounting statement from the point of view of a bank. So by depositing money in the bank we increase the liability of the bank for that money. Liability is the amount of money owed by the bank to us. That is why liability is shown on the credit side.

From the perspective of a bank, when the amount of cash at a bank account increases, there is a debit transaction and when the amount of cash at the bank decreases, it is a credit transaction. But from the perspective of a customer, this theory works in reverse. This means that when we add an amount to our account it is said to be credited and when we withdraw the amount from our account, it is said to be debited. This happens because our deposits to the bank increase the liability of the bank towards us and when we withdraw, it decreases their liability.

This is

what is CR in Bank Statement.

CR on bank statement stands for "Credit" or "Credit Entry." It indicates any deposit, addition, or incoming funds into your account. When you see a "CR" next to a transaction or entry, it means that the transaction has increased the balance of your account. This could include things like deposits, interest payments, refunds, or other forms of income that are being added to your account. I also came to learn what does CR mean in bank statement quite recently from a bank official only. Also, I came to know that DR stands for Debit or Debit Entry. 

What is the difference between CR and DR?

Since credit and debit are both the two primary aspects of a statement, let me share their differences in brief as well. These will help you comprehend what CR in bank means more clearly:

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The terms CR and DR can confuse you since these two terms have different meanings in accounting, bookkeeping and bank statement. But since everyone deals with bank accounts it's better to briefly know CR meaning in bank statement briefly. Let me share with you the meaning of CR in simple terms.

 What is CR full form in bank?

The full form of CR means credit. When money is added to your account which is caused by someone transferring money to your account or when the interest earned from the bank is known as CR. The opposite of CR is DR. The meaning of DR is debit balance (overdrawn). 

I will share with you a simple example so that you can understand the concept of CR and DR.

Let’s say you work for an organisation and they pay you a salary of Rs. 10,000 every month. Now, every 1st day of the month this salary is added to your bank account. This is known as the amount that has been credited. On the other hand, from Rs.10,000 you pay a significant amount for rent. Let’s just say you have to pay Rs. 5,000 for rent. This amount you transfer to your landlord every month. The amount you transfer from your bank is known as debit i.e overdrawn. I hope I was able to clear your doubt regarding CR meaning in bank.

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