Debits and Credits (eBook excerpt chapter 2.05)

A free sample from chapter 2 Accounting Fundamentals of our Landlord Accounting in QuickBooks guide. Section 2.05 Debits and Credits? We hope you’ll become a customer today, or sign up for the free e-course.

Does this seem too complicated or hard?

Hang in there, our guide lets you skip over the first chapters if you don’t want to study the fundamentals yet, and instead just learn via point and click to enter the common landlording transactions. :-)

“Debit” and “Credit” are two of the scariest words for many beginning bookkeepers. Debits occur on the left of a T-Account, and credits occur on the right. The frequent usage of Debit Cards and Credit Cards further confuses everyday language with accounting terminology. When you understand how to use Debits and Credits, they act as rules to guide you in figuring out almost any type of transaction.

Definitions

A Debit is always on the left hand side of a “T account.” Asset and Expense accounts increase in value when debited, whereas Liability, Equity, and Revenue accounts decrease in value when debited. The letters Dr. are the abbreviation for Debit. The opposite of a debit is a Credit.

A Credit is always on the right hand side of a “T account.” Credit is abbreviated Cr. It is the opposite of a Debit.

debits credits quickbooks

Debits are on the left and Credits are on the right. Increasing the balance in a cash account is a debit (it occurs on the left side of the T-Account.) Increasing the balance of a liability account is a credit. Turn the page back and look at the previous transactions, observing how they follow this rule.

 

This section goes on for several more pages in the eBook, available for purchase and instant download.
Order our full training today. It comes with a money back guarantee. And thousands of customers love it (read testimonials ♥).

See pricing information for QuickBooks training for Real Estate

3 thoughts on “Debits and Credits (eBook excerpt chapter 2.05)

  1. Pingback: Q&A: Why are debit cards called debit cards? | Property Management in QuickBooks

  2. Pingback: The Sum of all Debits = the Sum of all Credits (eBook excerpt chapter 2.08) | Property Management in QuickBooks

  3. Pingback: Debits and Credits for Landlords in QuickBooks | Property Management in QuickBooks

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>