Accounting

Credits & Debits

DEALER is an acronym: Dividends + Expenses + Assets = Liabilities + Equity + Revenue

• Normal debit accounts: Dividends, Expenses, Assets
  • Debits increase these accounts
  • Credits decrease these accounts
  • Go on the “left”
• Normal credit accounts: Liabilities, Equity, Revenue
  • Credits increase these accounts
  • Debits decrease these accounts
  • Go on the “right”