Episode 4 – Debits and Credits
Recorded: April 14, 2020
Released April 14, 2020
Intro by Clive Castle
Sounds by Zapsplat
In this episode, Patrick explains the difference between debits and credits. To best understand this concept, simply remember that Debits exist on the left side of an accounting transaction and credits exist on the right side.
Debits do NOT mean Increase in every situation and Credits do NOT mean Decrease in every situation! It all depends on the type of account. For Asset accounts, Debits increase the balance and Credits decrease the balance. For Liability and Equity accounts, Credits increase the balance and Debits decrease the balance. Listen to the episode to learn more!
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