ACCOUNTING BASICS: Debits and Credits Explained

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!

⏱️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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#accounting #accountingbasics #accountingstuff

[AccountingStuff]

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 :)

🔗USEFUL LINKS

⏱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

[TheDudecof]

Einstein once said "If you can't explain it simply, you don't understand it well enough."

This guy obviously gets accounting
My professor on the other hand...

[robertovalle]

WOW, I paid 60, 000 in grad school getting my MBA and this is the first time I actually hear somebody explain it clearly... My business school professors could never explain it this easily

[aggieterry]

I've been told : PEARLS
Debit: Credits:
Purchases Revenue
Expenses Liability
Asset Sales

Thank you James, your films are very good and make much sense :)

[himanshunathani]

I'm a novice in accounting, and was struggling to understand basic accounting equation. I've jumped on so many videos and references and ultimately lost all sanity. THEN I saw this video. 5.44 mins of listening and I got my sanity back. THE MOST CLEAR AND PRECISE. NO BS.

[JaveriaYousuf]

I've been studying accounting for 2 years and none of my teachers could explain it this clearly. THANK YOU James.

[ChocolateBubbleSkater]

I'm an accounting major and these are some of the best explanations I've found. Good work

[FeanorSociety.]

Been inn accounting for about 3 years and I feel silly because this very basic and simple stuff still gets me confused. This has helped me a lot! I appreciate the work you put into this man!

[Smidgenism]

Just casually learning about accounting in the quarantine times (this is 4-month desperation behavior for an unemployed artist), and this concept was the first major stumbling block that made me think I wasn't cut out for it after all. Not only did the video finally get the concept to click for me, but the comment section full of proper accounting students who felt similarly has made me feel better for not getting it 😂 Thanks!!

[simphiwendlovu]

where have you been all my life?! Finally, thanks to you I GET IT.

[kagithkagith]

This man proves that accounting is fun! I'm currently learning double-entry bookkeeping with a learning provider that can't explain anything properly, so these videos are a godsend!!!

[sasa]

I've been studying accounting for 4 years and non of my teachers could explain it this clearly. THANK YOU SO MUCH

[sechubemalatji]

Thank you for your videos James, bless you. I'm an MBA candidate and I was doing Accounting and financial management last quarter - I got my results today and I passed my exam through using your videos and other material to practice.

[pyrospark]

Honestly this 6 minute video taught me more than my Professor has in 6 weeks.

[nala]

I have a unit assessment on Friday and was struggling with doing this via home learning with no one to explain. Watched this twice and think you should be writing our course manuals. Can’t thank you enough, subscribed.

[baueraltynbek]

As it was suggested earlier by other commentators, James should teach most of professors how to teach Accounting basics. Good job, James! May your hard and creative work only benefits everyone learning this subject and inspires you for best results! Thanks a lot!

[georgiaie]

I wish I found this channel when I was in grade 12!! There are some amazing points and clear definitions. I love the time splits. Keep up the great work

[Matt-nemu]

The editing and camera work on this video is amazing! It makes it so fun to watch!

[sunitadas]

I've always had a difficulty understanding accounting, and you've done some good work for me. Keep helping me all the time. Subscribed! 💛

[kevinmunyon]

As someone who works in public accounting, these videos have been fantastic to look back to to kick the dust off the brain. Thanks for the videos!