Debits vs Credits Cheat Sheet 📚 Grab my FREE accounting infographic ebook: (link in bio) If you want to undersatnd accounting, you must know debits and credits work. Here's a simplified breakdown: Account Types and Their Normal Balances: 💰 Assets: Debit (Increased by Debit, Decreased by Credit) 💸 Expenses: Debit (Increased by Debit, Decreased by Credit) 📈 Dividend: Debit (Increased by Debit, Decreased by Credit) 📉 Losses: Debit (Increased by Debit, Decreased by Credit) 📊 Liabilities: Credit (Increased by Credit, Decreased by Debit) 💼 Capital: Credit (Increased by Credit, Decreased by Debit) 💵 Revenue: Credit (Increased by Credit, Decreased by Debit) 📈 Gains: Credit (Increased by Credit, Decreased by Debit) Key Points to Remember: • All Assets, Losses, and Expenditure accounts will have a Debit balance. • All Liabilities, Gains, and Revenues accounts will have a Credit balance. • All journal entries are placed in their respective ledger accounts. • The first step in accounting is to pass a Journal Entry for every transaction. • Some accounts will be debited and some will be credited. Example: In accounting, every transaction affects two accounts: • Business makes a sale of $700 in cash • Cash account is increased (debited) by $700. • Revenue account is increased (credited) by $700. #accounting #accountingstudent #finance #finance101 #invesingforbeginners #investing - @brianferoldi