A Simple Guide to Understanding Debit and Credit in Accounting
To understand debits and credits in accounting, you have to get one thing straight: it's all about tracking where money comes from and where it goes. Every single transaction has two sides. Think of it like a perfectly balanced scale. A credit is where the value originates, and a debit is where that value ends up. They must always, always be
What are the basic accounting equation: Guide to assets, liabilities, and equity
At its core, the basic accounting equation is Assets = Liabilities + Equity. This simple but powerful formula is the absolute foundation of all modern bookkeeping. It shows that everything a company owns (its assets) is financed by either what it owes to others (its liabilities) or what the owners themselves have invested (its equity). The Accounting Equation Explained Simply Think of