The
Backwards C Memory Jogger
Debits ^ Credits ^
Assets
------------------+
|
|
Liabilities
|
|
Equity
|
|
Income
|
------------------+
Expenses
In a
General Ledger Debits are usually shown on the left, and Credits on the right
side of any transaction or report. You can use this to help you remember how
and when to post debits or credits. Simply visualize the “backwards c” above,
and think of it this way.
Debit
Balance Accounts, the two on the left side of the backwards C (Assets and
Expenses) require a (D)ebit to make them go up ^.
Credit
Balance Accounts, the 3 on the right side of the backwards C (Liabilities,
Equity, and Expense) require a ©redit to make them go up ^.
Remember
this, and the fact that debits and credits must always equal each other, and
you will always be able to figure out how to post to your General Ledger
accounts.
-John
Esak
-Nex
Accounting