The True Meaning of Debits and Credits – Accounting Instruction, Help, & How To (Financial & Managerial)

The same is true when we hear the terms, debit and credit, the terms often having a meaning to us which is so much more than the placeholders they actually are. The difference between how the concepts of debits and credits relate to accounting and how the concepts of checker pieces relate to the game of checkers is that most of us learned how to play the game of checkers while also learning the definition of what checker pieces are, but most of us have not fully learned the game of accounting, although we have heard the terms of accounting pieces used in many different contexts, the accounting pieces being debits and credits. The fact that we have learned terms related to debits and credits apart, or outside, of the accounting game leads to false, or incomplete, understandings of what the words mean. When learning how to record accounting transactions, we need to get back to the core definitions, requirin

Although learning how debits and credits work is not an easy process, learning the definitions of debits and credits is and easy process. Debit can be defined as “recorded on the left side” (John J. Wild, 2015) and credit can be defined as “recorded on the right side” (John J. Wild, 2015). Note that these … Continue reading The True Meaning of Debits and Credits