Debits and Credits

Why does every accounting transaction affect at least two accounts? In this video, you’ll finally understand debits and credits and how they keep the accounting equation in balance.

In this lesson, you’ll learn:
What double‑entry accounting is and why every transaction has two sides
Why debits and credits don’t always mean “increase” or “decrease” by themselves
Which accounts normally increase with a debit (Dividends, Expenses, Assets - DEAD)
Which accounts normally increase with a credit (Liabilities, Equity, Revenue - LER)
A simple cash‑and‑revenue example that shows how both sides stay balanced

This video is perfect for:
Senior high school ABM students learning basic accounting
College beginners in accounting and bookkeeping
CPA board exam reviewers who want a quick refresh on debits and credits

⏱️ Timestamps
00:00 Why every transaction affects at least two accounts
00:05 What is double‑entry accounting?
00:15 Debits and credits as recording tools
00:30 Normal debit accounts: assets, expenses, withdrawals
00:55 Normal credit accounts: liabilities, equity, revenue
01:20 Memory tips: DEAD and LER
01:35 Example: cash received from a customer
01:55 Why understanding debits and credits matters

🎓 Study with iCPA
Get more reviewers, practice questions, and downloadable PDFs: www.icpa.ph

💬 Question for you:
Which part is harder for you - remembering which accounts are debit/credit, or applying them in journal entries? Comment below so we can make a follow‑up video.

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Видео Debits and Credits канала iCPA