Debits & Credits: a 2 Minute Tutorial

[@AccountingStuff]

What acronyms / initialism do you like to use to remember Normal Debit and Credit Accounts?
💥Debits and Credits Cheat Sheet → accountingstuff.com/shop
⏱TIMESTAMPS
00:00 - Intro
00:32 - What is Double-Entry Accounting?
01:10 - Origin of "Debit" and "Credit"
01:30 - Debits & Credits explained using Economic Benefit
02:50 - DEALER
03:15 - Debit & Credit Example

[@ziglyzigly-mz4gf]

Props to you fo being able to do this stuff for 6 years while keeping your sanity intact

[@AccountingStuff]

It's the longest I've ever worked in one job :)

[@Rallik]

James I absolutely love all your videos, thank you so much! I now also advertise your channel to my work colleagues as nobody explains it in such a clear but also entertaining way! Your videos are just so much fun, thank you!

[@AccountingStuff]

Thanks, great to hear you're finding them useful :)

[@deebaji]

I like DEALER after you have shared this acronym with us

[@AccountingStuff]

Glad you're finding it useful :)

[@aaliyah.parrilla]

Thank you for this informative video! 👏

[@AccountingStuff]

You're so welcome!

[@BEN-hs7zm]

Please make a video on Cash Conversion Cycle

[@AccountingStuff]

Thanks for your request!

[@prathikshak3792]

Heyy! Please make a video on Schedule 3 balance sheet of company .

[@AccountingStuff]

Thanks for your request!

[@crystalcaitlyn9310]

can you explain receivables in another video

[@AccountingStuff]

Thanks for your request!

[@Sai_Prince1]

Bro.. do video about GAAP vs IFRS

[@AccountingStuff]

Thanks for your request!

[@jaycie5021]

So you failed hard to get it in under 2min
What's your penalty?

[@nikhilreddy8550]

To his credit, his viewers are forever indebted to his contribution. So he is all good. 😊

[@AccountingStuff]

What would you suggest?

[@xgum]

if only dealer had one E

[@UneFilleAmericaine]

I’ve also seen it written as DEALOR where the O is Owner’s Equity

[@libbylib1819]

You can 😊 In UK, Equity is called Income, so we use DEAD CLIC:
Debit:
Expenses
Assets
Drawings
Credit:
Liabilities
Income/Revenue
Capital/Equity

[@AccountingStuff]

If only!

[@AccountingStuff]

@@UneFilleAmericaine That works! But it wouldn't be an acronym anymore. Shouldn't be important... but it matters to me :)

[@raomoize4313]

Apply Dead ( debit for Expense, assets , drawings ) and Clic( Credit for income, liability, capital)

[@Heinz_ubermen]

Partnership dissolution

[@AccountingStuff]

Thanks for your request :)

[@wuquanchi]

Does people understand this :D I really wonder, if a person not in the accounting and just want to understand what the CR and DR is.

[@AccountingStuff]

Dr means Debit and Cr means Credit. These are words that we use to reflect the double-sided nature of financial transactions. I explain why we need them in this video: th-cam.com/video/cjO8qHM5Wjg/w-d-xo.html

[@wuquanchi]

@@AccountingStuff thanks for the answer but I know what it is very well. But including CPAs still confuses with the terms because no body teaches it very well. credit debit doesn't mean anything, It is left and right pocket. that's all. the term it self always confuses people. ayways...it should be included in balancesheet and P&L, no one understand the terms as is. my two cents....

[@AccountingStuff]

​@@wuquanchi Fair enough!

[@tsholo977]

Why does a business owe what it owns. I dont get it😐

[@AccountingStuff]

Because the claim on a business's Assets are split between its creditors (through Liabilities) and its owners (through Equity).

[@tsholo977]

@AccountingStuff Thank you for the feedback

[@AccountingStuff]

@@tsholo977 No problem :)