Debit credits

Please can someone help keep with debits credits it has completely smashed my head a carnt get my head round them


  • fedemenni
    fedemenni MAAT, AATQB Posts: 95

    debits: expenses, assets, drawings on one side and credits: capital, liabilities, income, on the other side
  • amurray
    amurray Registered, MAAT, AATQB Posts: 304 Dedicated contributor 🌟 🐵 🌟
    edited December 2019
    I learnt DEAD CLIC which was fantastic.... but I was also informed of another one: PEARLS.

    PEA = Purchases, Expenses, Assets – Debits

    RLS = Revenue, Liabilities, Sales – Credits
    Completed AAT in March 2020
  • Pian32
    Pian32 MAAT Posts: 474 Dedicated contributor 🌟 🐵 🌟
    I think the other way of thinking about it is: Has the money gone to something or come from something. (from the business perspective)

    Taking DEADCLIC which is what I was taught initially.
    You put money into an expense to pay it.
    You put money into your assets to store it (banks, FAs etc)
    You put money into the owners drawings.

    You take money from a lender (Liabilities)
    You take in income
    You get capital from the owner.

    This also means when you reverse one of those like pay a loan you put money into the loan on the debit side.
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