ACCOUNTING BASICS: Debits and Credits Explained

The confusing part is how the words "debit" and "credit" are used and the fact that people think of these in terms of their normal English meanings. Thinking of it in terms of Source and Destination is what finally helped me understand it.

This is spot on. Thanks and good work

Loved this. You did a wonderful job of clarifying concepts and your recap was most helpful.

I'm gonna need you to tone those nostrils down a bit.

Hi, everyting I know from accounting I learned from you😊 thank you so much for doing these kind of videos.
Can you please make a video about journalising RECEIVABLES and explain different methods? Would be much appreciated 😁

Wonderfully explained

james, i am a struggling acct. student and this was SUCH a fun way to solidify my learnings. straight up LOVE this, you're nailing it.

Thank you for this video 😭 I'm not even done and I feel like all the stuff I've learnt since junior school is beginning to make sense.

I am a student in my senior year majoring in finance. I have taken 4 or 5 accounting classes at this point between the 200-400 level and I have never felt like I have had a good grasp on accounting terminology. This video explains the subject in a such a simple way its mind blowing. Thank you very much for this series.

You are the G.O.A.T for this, Best explanation i have every heard, thanks for lifting the veil.🎩🎩🎩👏👏👏

Well done my brother, perfectly explained.

OMG this has confused me so many years even after a degree and a year placement. I would get it right but I didn't fully understand it. This is the best explanation ever. Especially the debits destination and credits source part. THANK YOU!!!

Thanks

Nicely done

Hi James, thank you so much for this amazing explanation and simplification. Just one question, is it right if i say that the RHS is anything that can be used for the LHS needs?

wtf is dividents

PERFECT!

Really like this channel

This was so good. Such a great way to explain it. Thank you

brooooo why dont you BLINK you eyes.....

Try this way of understanding it all:

Assets are what you own plus what you're owed.
Liabilities are what you owe.
Net worth is assets - liabilities.
Debits increase net worth.
Credits decrease net worth.
Equity is a special, constantly-changing liability to shareholders equal to assets minus other liabilities. The effect is to transfer what would the the firm's net worth to the shareholders.

二元性

watching your videos seriously help me understand accounting so much better for last minute studies before exams

hey, I have a question that is confusing me for months!

Now, you said R.H.S of the accounting equation increase when credited, you see, dividend and expense are a part of owners' equity, so why do they go on the LHS and increase when debited??

they are originally from the owner's equity, so they should credit to increase, so why the opposite?

Thank you man! This is such a great video that, although it’s been more than 5 years since its release, it can still help people like me who are trying to learn accounting stuff ❤

DEALER????, Thank you so much

Hi James . Love the simplincity and graphict on each explination ( I have to watch the clips few times ) but I get better understanding each time . THANK YOU !!!!!!!

Thank you for sharing this. It's really useful

Can you please explain how the economic flow of benefits is in the same direction for Dividends and Assets ?

I pursued law to avoid math, and now I'm here learning solicitor's accounting

I press like even before watching

You are such a good teacher Sir, welldone and keep it UP! Shoutout from South Africa!

Hello sorry I'm still a bit confused maybe because it's my comprehension so may i ask, what is the difference between liabilities and expenses and how liabilities becomes a source and expenses is destination? I kinda understand it but i still want to be able to comprehend it well. Regardless of that, thankyou so much for making this videos, I'm struggling but I'm willing to work hard in order to be an accountant. Thankyou so much!

Hello, first of all, thank you very much for your videos. I am an engineering student and they are very useful for me in my cost analysis course. There is a question that comes to my mind; while I was solving an example in class, I saw that the dividends part was included in owner's equity, and therefore it decreased when debited and increased when credited. What could be different here? If I couldn't explain it clearly, I can share the question with you on Instagram! I would be very happy if you could help me :) thank you

thankyou❤

I'm a bit confused by the "DEALER" method, which seems to increase expenses through a debit, making them assets. But I thought only prepaid expenses were considered assets, and regular expenses were recorded on the income statement instead of the balance sheet.

Could you clarify this for me?

I am learning english and at the same time accounting and your videos are perfect for me!!

You son of a B*tch, you have no idea how much this video has assisted me. You are doing the lords work. thank you.

thank you so much! I just started an accounting and finance subject and I will watch all your videos from now on.

Well thank God, I finally found the pure and concise definition of Credits and Debits that I was searching for! Many thanks 🙏

Nice touch with the loonie 🇨🇦

Why is revenue on the credit side?

This video is so helpful, we got recommended to watch your video for more explanation and that works.

Amazing video! Mr James I am really interested and your explanation was well understood and very helpful to me👍

Can someone clarify something for me? I am still confused as to why crediting will increase the liabilities + owners equity + revenue. If I credit revenue, doesnt that mean money is leaving revenue, therefore decreasing it? The same applies for liabilities, and equity. If i credit $100 of liabilities, doesnt that mean i am taking away $100 from liabilities, therefore my liabilities decrease? Any help would be appreciated as I have an Accounting exam tomorrow!

I can't believe that I didn't watch your videos sooner, James. Made me understand 5 years of mind boggling concepts in 5 minutes. Keep up the good work.