ACCOUNTING BASICS: Debits and Credits Explained



💥Debits and Credits Cheat Sheet →

Shhh, it’s a secret! Not really.. In this Accounting tutorial you’ll discover the true meaning of Debits and Credits in Accounting. This episode is a continuation of our series exploring Accounting Basics. To see the whole playlist check out the link below.

The terms ‘Debit and Credit’ are the bread and butter of Double Entry Bookkeeping and reflect the duality or double-sided nature of all financial transactions. It’s crucial to understand this concept when studying Accounting for Beginners because all transactions generate Credit and Debit entries. At the end of the video, I’ll show you the secret to Debits and Credits which will make remembering which side of the Accounting Equation they fall on a piece of cake!

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⏱️TIMESTAMPS
00:00 – Intro
00:39 – Debit and Credit Misconceptions
00:55 – What are Debits and Credits in Accounting?
01:22 – What is Economic Benefit?
01:48 – Which Accounts are Debits or Credits?
02:35 – Is Equity a Debit or a Credit?
02:46 – The Maths behind Debits and Credits
04:09 – How to Remember Debits and Credits
04:33 – Recap

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39 Responses

  1. Luis P says:

    thank you, so well explained!!

  2. Samantha Bode says:

    Thank you!!

  3. Mostly Jeff says:

    Thank you so much, watching from Kenya. It has really made my attitude towards economics positive simply like that.

  4. Gabriel Matthews says:

    Hey man, just wanted to say thank you so much for your service to us! Legend.

  5. Bart Gee says:

    This is the best explanation of debits and credits I’ve ever heard. And I’ve been perpetually confused by this stuff. Making the complex simple. Brilliant!

  6. Alexie Mae Dy says:

    This is helpful! Can you please also include managerial accounting? Like Job order costing vs process costing. Thank you!! You are great at explaining than my actual professor and online book.

  7. Frosty says:

    i still dont get it can someone explain to me this in idiot words

  8. Basement Dweller says:

    I learned in 5 mintues, what my teacher failed in 80 minutes

  9. bright says:

    Amazing Video! Helped me so much

  10. Sun Wang says:

    the star was born

  11. Ihkuvvgvgu gyoyiggyikvy says:

    D.E.A.L.E.R is it your invention,? mate

  12. nayeemul islam says:

    Truly easy to understand !! ❤️❤️

  13. Cameron Alim says:

    Super helpful, thank you!

  14. Meagan Hernandez says:

    This is a GREAT explanation!

  15. Carmella Flores says:

    Why am I only finding this now. This could have helped me a lot back in Senior High. But good thing I found it before going to college hahha

  16. P3 Gaming says:

    Another acronym to remember which is which is DEAD COIL
    Debits: Expenses Assets Drawings
    Credits: Owners Equity Income Liabilities

  17. Jared Olson says:

    Now I can sleep tonight without trying to mentally comprehend this. Thank you so much!

  18. Diann Rampersad says:

    Thanks a lot… I just listened this in a hour not 5:44 minutes lol… had to pause and listen and take notes…..

  19. Ronen M Sion says:

    Debit increase is increase in destinations (assets/expenses).
    Credit increase is increase in sources (revenue, liability, equity).

    I like to think like this… Withdrawals from your cash at bank (a destination/asset) is credited. You now have a cash source 'credited to your hand'.

  20. ExperiencesExplorer says:

    Simple, easy and spot on!! Got so confused earlier.. DEALER will be retained forever!! Take a bow! I just solved the questions I was sitting with for 30 minutes! Thanks to this video

  21. Caleb Brown says:

    Brilliant.

  22. Yazhini Krishnamurthi says:

    Hey mate!
    I'm an English major and took an accounting elective. I've been struggling a lot until I found your channel. Amazing stuff. I've learnt more from your videos than I've done in class the past 4 months. Thank you so much!

  23. KOFI TSATSU says:

    Please help me out. I need your personal contact

  24. Ayesha jahir says:

    heyyy so got an accounting test tomorrow in 8th grade wanna take accounting further in life lowkey nervous but your videos are helping

  25. Stefan M. Gerard says:

    You are a legend. Thank you.

  26. David Sundeep N says:

    Why Asset is a Debit?

  27. Roman Phillips says:

    Boy u look like Colin cowherd lol

  28. Борис Кабаков says:

    Best explanation I've seen so far)

  29. Kevin Watts says:

    fucking love this guy

  30. Brianna Mutz says:

    Why are you better at teaching than my instructor .. fml haha

  31. hatta nugroho says:

    I'm from Indonesia

  32. ryn N says:

    If only I saw this when I was in my high school…. then I would have come to love Accounting (ToT) [p/s: I failed my exams every time!]
    Anyway I plan to study it again during this semester break, and thank you for explaining all these concepts in a simple way!!

  33. EvoiD. says:

    Its called ABLEH in my country!

  34. Prosper says:

    My brother you are powerful. I like how you explain.

  35. SRIDHAR MERUGU says:

    Please upload cost accounting related videos

  36. Barry Steakfry says:

    Increase in A/E : Debit
    Increase in L/I/C : Credit

  37. Chazz J says:

    You're a life saver man! thank you for making it understandable lol

  38. Accounting Stuff says:

    In making this video, one of the terms that I found hardest to define is "Economic Benefit"… if you have any alternative definitions to the one I gave I would love to hear it 🙂

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