Debits Vs Credits – Accounting Basics – Part 1

Debits and credits are the building blocks of accounting and bookkeeping. While they are so widely used, they are so poorly understood.

That’s because it’s not easy to explain how debits and credits work without using lots of confusing accounting jargon.

That’s why we have put together a series of four video tutorials to simply teach you how to understand the debits and credits in your small business accounts.

In this video, the first in the Accounting Basics series, you will discover a golden principle about debits and credits that all accountants and bookkeepers know.

You will also get to see this principle put into action when we demonstrate how to enter the debits and credits into a small business’s accounts for two common transactions.

In the second video, The Nature of the Five Account Types – Accounting Basics – Part 2, you will expand on your new-found knowledge and learn why an entry is a debit or a credit.

In the third video, T-Accounts Explained – Accounting Basics – Part 3, you will see how to map out your debits and credits using a key visual bookkeeping method called T-Accounts.

The final video of the series, Double-Entry Bookkeeping Explained – Accountings Basics – Part 4, will pull together all you have learned to crystalise how it all relates to double-entry accounting.

So, go ahead and start learning about the fundamental building blocks of accounting and bookkeeping by watching all the videos in this series.

Disclaimer: Our articles and videos are here to inform you and the information provided does not constitute financial, taxation, legal, business or other professional advice and should not be relied upon as such. See our full disclaimer here.