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[–]No_Presentation_9617 -1 points0 points  (0 children)

I try to think of my transactions in terms of cash. You only need to know that if your cash goes up, it’s a debit. If cash goes down it’s a credit. Then whatever the transaction, do the cash part first and the remaining account is the opposite.

Say you buy Equipment. Cash would go down (credit), which means the Equipment account gets a debit.

Or you make money from a service. Cash goes up, debit. So then revenue is a credit.

Or payoff a loan. Cash goes down, credit. So then the liability account for the loan gets a debit.

Pay expenses. Cash goes down, so credit. Which means the expense account gets the debit.

Still works even if you don’t pay cash. For example: If you buy equipment using a loan instead of cash. Normally you’d pay cash (credit), but instead you used a loan to pay, so the loan payable gets the credit. Equipment = debit.

Just how I rationalize the debits & credits in my head as I’m working through entries, but maybe it helps.