Journal Entry- Credits and Debits

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Journal Entry- Credits and Debits [#permalink]

14 Sep 2010, 09:12

In our accounting class last night we went over Journal Entries with Credits and Debits. It was very confusing. Does anyone have an easy way of explaining it or a source I can check out?

Last edited by Barium on 20 Sep 2010, 10:50, edited 1 time in total.

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Re: Jornal Entry- Credits and Debits [#permalink]

14 Sep 2010, 16:42

Debit are on the left-side, credits on the right (of a t-account).

Assets go up on the left, down on the right.

Liabilities go down on the left, up on the right.

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Re: Jornal Entry- Credits and Debits [#permalink]

15 Sep 2010, 07:16

Barium wrote:

In our accounting class last night we went over Journal Entries with Credits and Debits. It was very confusing. Does anyone have an easy way of explaining it or a source I can check out?

Debit & credit are the foundation of a double entry system. Actually debit credit terminologies are not important. Its the double entry system that needs attention.

Check these links out

http://www.accountancy.com.pk/forum/top ... IC_ID=2056

http://www.futureaccountant.com/account ... credit.php
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Re: Jornal Entry- Credits and Debits [#permalink]

15 Sep 2010, 08:34

Watch out for contra assets like allowance for AR and accumulated depreciation.
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Re: Journal Entry- Credits and Debits [#permalink]

20 Sep 2010, 10:54

Hussain15 wrote:

Barium wrote:

In our accounting class last night we went over Journal Entries with Credits and Debits. It was very confusing. Does anyone have an easy way of explaining it or a source I can check out?

Thanks- those links help. I'm slowly starting to grasp it but its good to know that the terminology for credits/debits for non accountants is the opposite of those in the field. Just need to make the minor adjustment but pretty much Debit= Left and Credit =Right and what it does to journal entry after that point depends on its classification (asset, liability, equity, revenue, etc.)

Re: Journal Entry- Credits and Debits [#permalink] 20 Sep 2010, 10:54

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Journal Entry- Credits and Debits

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