I.   Introductory Provisions

Credits are the sixteenth of thirty-three (33) Administrative Elements of Trust being an Accounting computation of an addition of numbers to a particular type of Account within a Ledger associated with the posting of Journal entries and general practices of Accounting.

The term Credit is not to be confused with the calculations determined under a posting into a Journal. A Credit is a calculation of addition to the total number reflected in a particular Account (which itself may be a Credit or Debit type Account) when posting a Journal entry into Ledger entries.

The confusion over Credit calculations is compounded with the issue of Venetian Bankruptcy Accounting which from the 16th Century mirror reverses and therefore corrupts the true notion of how to treat Asset, Liability, Revenue, Expense and Capital Accounts:

(i) Under a non-bankrupt Trust, or Estate or Fund, an Asset Journal entry would be treated as an Credit (increase) in an associated Credit type account and a Debit (decrease) in an associated Debit type account; but

(ii) Under Venetian Bankruptcy Accounting, the treatment would be reversed, leading in many cases to confusion.