What are Debits and Credits?

Debit and credit rules sound complicated, but debits and credits are simply the left and right sides of a ledger account.

Debit is the left and credit is the right.

Remember there are five main types of ledger accounts – assets, liabilities, owners equity, revenue and expense accounts.

Debit and credit rules are based on accounting logic and follow the accounting equation.

Because of this logic, once you understand you will be able to work out the journal entries for your transactions.

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So in summary the debit and credit rules are;

To learn more and have a teacher explain this with video, examples and a quiz, take this Introductory Accounting Tutorial Course Accounting Equation and Debits and Credits

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