Topics, 200 Accounting Resources, 200 Lecture List
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Debits & credits, one rule to rule them will cover the one rule needed to know how to make debit and credit balance accounts go up or down, although we do need to know what the normal balance of an account is before we can apply the one rule. For this, we have another instructional video or you can use a debit and credit cheat sheet, a cheat sheet being something I recommend having on hand to help know the normal balance of an account when possible. Once we know whether an account has a normal debit or credit balance we just need to apply the one rule, that being that doing the same thing to an account will make it go up and doing the opposite will make it go down. Assets have a normal debit balance so the one rule says that debits will make assets go up and credits down. Inabilities have a normal credit balance so the one rule says that credits will make liabilities go up and debits down. Capital has a normal credit balance so the one rules say that credits will make capital go up and debits down. Revenue has a normal credit balance so the one rule says that credits will make revenue go up and debits down. Expenses have a normal debit balance so the one rule says debits will increase expenses and credits decrease.