Find Debit Credit In Just A Second

When I was in the second year at my university, I had a non major course “Accounting”. I found it quite hard to understand how to solve journals and what the hack were debit and credit ! I spent hours understanding in my class but in vain. Finally I’ve come up with an algorithm (may sound funny) to find out which account entry is a debit account or a credit account! As a CSE student or anyone finding difficulties can easily find it helpful if they read this article thoroughly.

Let’s checkout the basic accounting’s law:

Assets = Liabilities + Owner’s Equity

Basic Accounting’s Law

We have two sides in the above law. Just remember the following things:

1. If something in the left side i.e cash, land etc gets increased ,then its a debit account. If decreases, then its a credit account.
2. If something in the right side i.e notes payable, capital etc gets increased,then its a credit account or else debit account except the two red marked things!
3. Even thought “Expanse” and “Drawing” are in the right side but they don’t behave like others in the right side but why?

Let’s remember some basic mathematics !
If you multiply -1 to any negative number, then it will become positive right?
i.e (-1) x(-20) = 20
Say you are going to the north, but if I say go to minus(north) ,then you have to go to the south!
Here, minus is simply rotating the direction to 180 degrees! It basically reverts the direction.

So in case of “Expanse” and “Drawing” both of them has a minus sign and that’s why they flip their working principles like the left side’s entries.
If expanse or drawing gets increased then its a debit account or else credit account.

This explanations is made for having a quick way to find and solve problems during examinations even though debit and credit has vast definitions.But for engineering students or anyone having difficulties it is way more easy to solve or even implement in coding for account related software.

Let’s have a look at some entries randomly:
A)Mr. X invested cash $6000 in the business.

So the journal entry will be like:
Investing something will increase the assets and here it is cash, so “cash” is at the left side and so its a debit account
Also, this investment is the capital of the business and it is at the right side and it also gets increment and thus “capital” will have a credit entry
So finally we can have

This is just an example of an sample entry. I’ve a tutorial on this you can find here: Click Here

Easy way to find debit credit

Even though this video is in Bangla but you can understand as some parts are in English.

Please let me know if it helped you!