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!

We have added some resources below to help you better understand Debits and Credits. Please let us know if these help. We are enjoying making these!

Debits Credits Infographic (PDF)

 

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