Start here if this is new
You do not need an accounting background. We will repeat the same simple rule until it feels natural: every business event changes at least two accounts, and the two sides stay equal.
Start here whenever a transaction feels confusing: name the family before choosing a side.
Assets: Debit makes it go up
What the business has or is owed, such as cash, equipment, inventory, or customer IOUs.
A credit makes an asset go down.
Debit and credit name sides, then each family has a “home side” where it increases.
Debit increases
Assets + Expenses
Example: more Cash means debit Cash. More Rent Expense means debit Rent Expense.
Credit increases
Liabilities + Equity + Revenue
Example: more Loan Payable, Owner’s Capital, or Revenue means credit that account.
Repeat the whole rule: assets and expenses grow with a debit; liabilities, equity, and revenue grow with a credit. To reduce an account, use the opposite side.
Lesson 1 of 5
Bookkeeping tells the whole story of an event. When something changes for the business, ask: “What did it receive or give up?” and “Where did that value come from or go?” Both answers get recorded.
Say it again
The one rule to keep: every transaction has two equal sides.
Takeaway: One event → at least two account changes → equal totals.