The best way to understand DEBIT and CREDIT
“The best way to understand DEBIT and CREDIT of journal entries is to remember that ASSET and EXPENSE are increased on left side (DEBIT) and decreased on the right side (CREDIT), while LIABILITY, EQUITY and REVENUE are increased on the right side (CREDIT) and decreased on the left side (DEBIT). Example, if you sell your car for $10,000 cash, the car is then decreased by $10,000 on the right side as an ASSET while cash is increased by $10,000 on the left side as an ASSET”.
