T-accounts and Debits and Credits

In this video, I explain the difference between debits and credits using t-accounts. I also explain assets, liabilities and equity accounts and how debits and credits increase/decrease in each category. I use a textbook by Wild called Fundamental Accounting Principles

[@edwinvsgio9212]

His better explaining things than my actual Prof.

[@Jayshul1slam]

I was totally confused until I read the following on my text book: "Think of debit and credit as accounting directions for left and right. Assets are on the left-hand side of the equation and thus increase on the left. Liabilities and Equity are on the right-hand side of the equation and thus increase on the right." Alhamdulillah. Thanks Matt!

[@jessicas96]

+Jayshul1slam thank you for sharing that!! this helped me tremendously! I too was very confused as to how this could be.

[@deepaknainwal5007]

good

[@TynTyn695]

Excellent explaining, thank you.

[@seliglam6078]

thanks alot

[@margaretbryan4454]

This totally confused me. Every time I use my credit card I'm asked Debit or Credit? Which one do I use?

[@mattfisher64]

Lucho, Thanks for your comments and good luck with your accounting career. I'm glad the videos are a good refresher for you! Matt

[@MrVpassenheim]

You're clear in the explanation, but the concept is pretty damn insane.

[@TheShadowOfMars]

It's overcomplicated. A simpler system is to have the basic equation be: Debits = Credit. Then replace the word "liability" with "relief" and reverse the sign of all the entries in liability and equity accounts, so that in ALL accounts an increase is a debit on the left and a decrease is a credit on the right.

[@natashadurant-oliver1139]

Assets= Liabilities + Owners Equity When Assets Go up you record it on the Debit Side When Assets Go down you record it on the Credit side When Liabilities Go up you recored it on the credit side When Liabilities go down you record it on the debit side When Owner's Equity/ Capital goes up you record it on the credit side When Owner's Equity/ Capital goes down you record it on the debit side

[@thomasjones9394]

What about liabilities and owners equity? When they go up you record it on the Credit side and when they go down you record it on the Debit side....unless its a withdrawal?

[@kya2457]

Yes. When you get a Note Payable, this is a liability, a debt which you are adding into your account, so as you are adding this debt you must add it on the credit side, which is the side that increases Liabilities. However, a Withdrawal means you take money AWAY from your Equity, so you no longer have it, so as you are taking it away, it must go on the side that reduces your Equity, which in this case is the Debit side.

[@daa002]

DC ADE LER

[@itsammar_]

ty

[@monkeymoonky7900]

I had the charts and everything on the book and read the explanations, and bunch of videos but why did this comment helped more than anything?

[@kthibsoccer]

I spent hours trying to figure out why I wasn't getting any of my credit and debit questions right on my accounting homework. After just half of this video, I completely understand and more!

[@brad177]

Matt fisher I am going to fail my exam its in 4 hours but atleast you tried man thanks

[@BossManTee]

did you fail?

[@mack3502]

u fail?

[@NukeGaming]

fail?

[@bmichelle8841]

You are really great at explaining the fundamentals of accounting at a good pace. I am grateful to know there are still professors like you still out there!

[@gregcormier9167]

All I have to say is THANK YOU SIR!! Keep the videos coming please

[@odalfrypolonia3099]

you are a godsend. I'm in accounting 2 and I didn't learn any of this on my first semester. It was confusing and contradictive. After seeing this playlist everything is clicking and makes complete sense. A million times better then any accounting professor and accounting youtuber. Thank you so much for being born.

[@SHRUTIKA59]

Wow, You are such an amazing teacher. I am an Engineer, doing accounting for the first time for my master's program, and understood it all in your one video. Thank You, Prof.

[@vvaalleerriiaa]

Incredible how this video from 9 years has literally saved me in 2022.

[@carlosfialdini1232]

All your videos are very helpful. Thank you

[@dmeneses7503]

I am currently taking ACG2021 and I was totally lost until I found your videos. Thank you so much! I come for your lectures now and understand them completely.

[@luchito321]

Matt, Thank you very much for the refresher! I received my accounting degree in 2005, but went into finance roles out of college and have stayed in the finance scene since then. Your video's provide a great refresher now that i'm looking to get back into a more traditional accounting role. Thanks, Lucho

[@omtulsi]

Thank you Matt, I’m not in accounting school, but learning accounting for my personal knowledge and use - and your lectures are the best!! Clear and full of knowledge. May you be healthy. May you be happy. May you be safe. May you be peaceful.

[@chawlavinay]

Thank you Sir, one of the finest videos on accounting, excellent for engineers like me who have no accounting b/g. much appreciated!

[@7625e]

Thank you, sir. Literally, a godsend

[@linghe199]

Good review that I have leant 30 years ago but just took a test for 100% correct!!! thanks!

[@LacyBug22]

This taught me much more than the textbook did. Thank you!

[@Flavie3366]

Thank you for this video! It has helped me tremendously with my college course!

[@vijaysharma8024]

Nice technique sir one of best teacher

[@JdaPrynce]

Thank you so much for this very thorough and clear explanation of a concept that I have been struggling to understand. Excellent!

[@abesidek6978]

thank you so much for this video.Honestly,i never understand what my lecture taught me .So i went home after class and watched your video then,i felt totally understanding what was accounting all about.It was something interesting actually.

[@SLCtica]

Thank you! Very concise and easy to understand.

[@jessicabaez2882]

I learned everything my professor failed to teach properly here, thanks!

[@gladyslopez7984]

His videos are awesome!

[@jamaicansinger-queenla7656]

First video I've seen that's made me understand T accounts

[@kasiajaszkiewicz8395]

You made this so easy to understand. Thank you.

[@wvdberg1]

thanks so much for helping me ..I was lost till I found your videos

[@RMHashan]

Awesome Explanation! Thanks a lot!

[@silviagallegos453]

best explanation yet. thank you

[@oraibabualhaija3378]

You are doing great, everything very clear

[@rubenmercado3326]

Great video u explained it very well! Thanx so much.

[@mikelo999]

Great. Thanks for allowing me to understand the accounting lecture that I missed :)

[@davepetrovskyi3532]

Thank you very very much!!! I could not get T-accounts... on which side do I need to put my income or expense, especially if it's accrual or prepayment. Found this tutorial and after 5 min watching I understood how to do this!!! Very helpful.

[@rachelnyanquoijackson1466]

Well done, the lesson is clear. thanks again

[@auroreikogou1739]

I was terribly confused, now I can easily pass my test. Thank you

[@chinnygold1617]

my dear..I really appreciate Mr. Matt

[@hayleywinslow3445]

I take an online class that has us learning everything through text book. I honestly do not understand text book examples nearly like I'm understanding your lessons. Thank you for sharing!

[@xan-leefraser8924]

Thank you! You make it easy to understand.

[@danoneactimel1694]

you save my life sir😭😭😭

[@gerhardgrotendorst770]

Keep up the channel 👌

[@umariqbalhussain6563]

Great explantion, thanks!

[@dikkeman123456]

very helpful, great video!

[@brunojdomingues]

Very good content. Strongly recommend it.

[@krismas9732]

SIR MATT, YOU ARE A GOOD ACCTG TEACHER.

[@andrewdatcu870]

These vids are great thanks!

[@madelaymiherrera]

excelent, I love the way you explain

[@SydAhmet]

Thanks for helpful videos from Turkey :)

[@martinchalonga7595]

Thanks so much....I'm now ready for the exam....

[@tiffanycrowe9325]

Thank you! Very helpful!

[@CHARLIEX0211]

Hi. I am still a bit confused about the Equity account. I thought an increase in debit accounts mean gain in the business (assets increase) and the credit accounts mean the lost in the business (liability increase). If I got that right, the capital and revenue should be a gain in the business, hence an increase in the debit accounts? and the withdraw and expanses are increase in the credit account? I am so lost. Can anyone explain that to me please??

[@tedoymisojos]

Very clear, thank you

[@nawidyarzada7922]

I really appreciate you Sr its really useful to me and one thing more i really like your morality and i really love to have one of your social programs to be get in touch with you via that such as face book account . Thank you too much

[@maisalshami7975]

شكرا ....thank you sooooo much

[@lifeofIsmael]

My professor should have your good handwriting! btw thank you!!!

[@shintyagabysiagian4550]

thank you so much for this video

[@kjuhyjukimjhghjkl4321]

Tysm you are god sent

[@realcification]

am a student at college of medicine doing health systems management, one of the modules we tackling financial management, i must say your videos are inspiring and hope to learn more from. if possible i would love to keep in touch with you directly through your email address. salute!

[@yashrajwade8648]

Thank you so much sir!

[@alysannetargaryen8986]

Thank you so much!

[@tubeprincessamirahtv7993]

Thank you sir.

[@geraldoherrera1187]

Good video

[@stephanieperez4929]

Thank you!!

[@ainthrifa4856]

do the cacti part cacti cacti hilarious but seriously this video is really helpful

[@bm6267]

Thank you!

[@feul307]

awesome

[@kendraa_______9981]

Bless you

[@captainezio3952]

you cut the corners thank you much :)

[@harrywu630]

Thank you

[@ekko_says]

Thanksss

[@rodctenis]

May I use your lessons to explain accounting to my law school students? It's so easy to understand that even us, lawyers, can follow it!

[@umasrivastava9523]

Thanks sir

[@jyotirmoyroy7041]

thank you so much

[@MrSghafari]

THank you sir

[@scottystamria344]

thanks for that then i knows now ,even I'm steel young to learn loke that

[@akwasiamoako]

thanks alot

[@yufeisun3989]

Thank ya!! Crystal !! After listening urs ! Lollollol !

[@lisamccray6481]

The withdrawal/expenses thing had me so confused at first. This is how I finally got unconfused. When it's time to talk about DEA-LER, withdrawals and expenses are explained as debits there. When it's time to talk about "the accounting equation" (assets = liabilities + equity) well then it's time to see that the debits cause equity to go down. Because we paid the withdrawals/dividend and expenses (debts). Any time you pay someone, equity goes down, but when cash and A.R. goes up, Assets increase. So Assets increase with income, and Equity decreases with payments. Is this basically correct, Professor?

[@willisteadpark7480]

Thanks

[@johnmoore9148]

SIR/ Anyone, In the T-accounts video where did the $20 come from? The original $100 I know but I would think that the $20 would be in the liabilities column somewhere because they now do not match.

[@dinomahmutovic3649]

thanks

[@aliwa6891]

Fuck watched this video for the third time and I finally have it .. OMG i'M SO proud of myself :)

[@RomanAugustus]

How should Debit & Credit be thought of...? I always think of 'Debit' as (a sum of money taken from a bank account). After watching this video, should Debit be thought of as putting money into something. For instances, Debit assets - I can see how this would increase assets. Also, 'Debit' Note Payables (paying money into N\P) would reduce the Liabilities. Not sure if my thinking process would work for the others Mmmmmmmmm. AMAZING VIDEOS BY THE WAY!!!!!!!

[@TheShadowOfMars]

Focus on the "assets" side of the equation. Debit is gain and credit is loss. The other side of the equation is there to provide balance, so the relationship is flipped: for liabilities and equity, debit is loss and credit is gain. The WD and Expense accounts are double-flipped because they've been given stupid names that say the opposite of what they actually are for: rename WD to "deposit" and expense to "earning", and flip the sign of all entries, then it works better. The reason accounting has so many insane double- and triple-negatives implicit in the account names is because T-ACCOUNTING WAS INVENTED BEFORE NEGATIVE NUMBERS WERE INVENTED. Sorry, I find it infuriating.

[@polaris5638]

@@TheShadowOfMars ik this comment is old but u really helped man

[@israelalvarado9720]

i must had watched about 50 videos on youtube about credits and debits and i have to say this is the best one, why you ask? well because NONE and i repeat NONE of the other videos explain when it comes to equity accounts these work different from the asset and liabilities account. Even when you were explaining the equity accounts you kept saying "on this side of the equation not assets and liabilities" capital increases w/ credit and decreases w/ debit " Which i can't believe no other video mentions this, and you even talked about the "wd and expenses" how even these from the equity accoutn are different from capital and revenue. I mean i kept getting confused with the other video because i kept thinking in debits increase everything, but noooooo, not in capital and revenue.

[@msss126]

If it was the opposite with cash: Debit = 20 TTT Credit = 100 Does that mean the Cash Account Balance is -80?

[@SI-rz4ic]

can someone explain the difference between a credit and a debit? I'm completely new to these things and I'm lost in my accounting class lol

[@nkosisibiya9245]

How can I get you as my private tutor?

[@pollyphobia]

why did i take accounting

[@StimulatingClips]

Because its awful and required for business degrees, unfortunatly lol

[@itierney]

You haven’t explained the rules, you just stated them.

[@davida6146]

This guy looks like an accountant

[@tony3952]

A+L=OE

[@ilias4763]

ems exam in 30min,wish me luck

[@KelpyG.]

I’ve watched so many videos and I still don’t understand. Feel dumb

[@syedali-portfolio7457]

DEALER.. dividends, Expenses, Assets. Liability, Equity, Revenue. Just rmbr this guys... youre welcome..

[@henrygonzalez3622]

OMG, you just made it so much easier. I wish you would be my instructor. I know this video was uploaded in 2013 but it's 2021 now and theirs a PANDEMIC going on and I got laid off from my job and now I need a new career. Many people are taking ZOOM online classes and it could be frustrating sometimes because and the instructor is teaching students 10 chapters ahead of me. THANK YOU VERY MUCH 😊🤍

[@lorrainegalaura6340]

Thank you !