Debits and Credits in Accounting - History and definition

[sudhiriyer]

This is gold! This video deserves to be bookmarked for life, beyond the life of YouTube! It deserves to become the preamble to any accounting primer. Thank you Sir! Main thing I got from this : the terms debit and credit in accounting parlance has got nothing to do with the English dictionary meaning of debit and credit . Hundreds of years of English’s evolution has distorted this accounting fundamental.

[davewagner]

This is great. I went through several resources to begin learning accounting and not one of them took the trouble to explain this simple difference in definitions. This clears it up. Thanks!

[xnanatos]

Finding a good explanation of the history of debit/credit was tough. Thanks for the video!

[riseALK]

Coming from Quora after reading Mr. Baskeville's excellent and very enlightening comments which helped me wrap my head around concepts I just couldn't visualise or make sense of.

[minhthuannguyen]

Thank you sir, I'm alway finding meaning of debits and credits, now I finally understand it, thank you so muchhhh!
Hope people find this video.

[ilyazjakshybaev]

This probably one of the most explanation video about debits and credits.

[DanielDiaz-uwob]

With all due respect, please check the italian pronounciation of Luca Pacioli. You are a master. Thanks for making us understand.

[jarvislo]

This is probably the most lucid explanation on youtube.

[gerardpatrick]

His name was Luca, not Lucia. Secondly, DR and CR are abbreviations for the English words 'Debtor' and 'Creditor', and they appear in this context in the third edition of Ralph Handson's book 'Analysis or Resolution of Merchant Accompts' in 1633. The words used by Pacioli for the left and right sides of the Ledger are "in dare" and "in havere" (give and receive), and he used uses Per (Latin for "by") for the debtor, and A (Latin for "to") for the creditor in the Journal entries.

[duloup]

Amazing! Exactly the detail that I was looking for. Thank you for creating this.Very helpful.

[brennan]

Excellent explanation!

I'm still left with the question though of why are 2 entries needed instead of just simply using to and from?

With standard accounting it seems like there is more information required:
(account, amount, debit or credit)
and then the matching other account
(account, amount, debit or credit)

3 data per account x 2 accounts = 6 data

vs just saying

(amount, fromAccount, toAccount) only requires 3 data

[ragulmsr]

thank you sir this is the most informative video, i ever seen such video in subject accounting

[ahmadsa]

Perfect presentation. Thank you very much. I was completely confusing in the meaning of debit and credit.

[sainathnekkadapu]

Hai Peter Baskerville Excellent information Sir, thank You. God Bless You..

[divinediffrin]

This is what I was looking for🔥..You nailed it Sir...Thank you so much Sir👍🏻

[nickfleming]

In your book, you give the example of business A purchasing $200 of stock from business B, and that in business A's books, it records an increase in Purchases and a decrease in Cash. But what about the increase in Stocks? That's happening on balance sheet too. 2 things on the balance sheet are always moving simultaneously but when you throw in revenues and expenses, now you have 3 things moving, but it's called the DOUBLE entry system, not the TRIPLE so how do you decide which to exclude. Let's say you receive sales revenue; many teachers will say that the 2 entries are an increase in revenue and an increase in stockholder's equity. What about the increase of cash? That is what causes the equity to increase.
I completely understand how everything works in terms of transactions and their effects on the balance sheet, but I've yet to find someone who has explained this specific framework in a way that makes sense

[richaldson]

thanks... sir, really help full.. i have lot of confusions like this...

[mehakarora]

could you explain more about what you talked about economic value in this or explain it in a different manner because i could not get it!

[kashyapmakwana]

Hello goo sir. i have a doubt .if debit and credi is not showing negative and positive then why internet shows that debit is a positive balance and credit is negative balance?

[jonathanbosco]

Thank you sir, great help, God Bless you