The secret of debits and credits

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  • Опубліковано 11 січ 2025

КОМЕНТАРІ • 298

  • @johnb9005
    @johnb9005 2 роки тому +9

    Thanks. I give you credit for having one of the clearest and concise explanations. Using the zero and the red and green arrows are very beneficial for those who are visual learners. I have been searching for an explanation that would help me grasp how debits and credits work, and yours is the one!

  • @mcash2508
    @mcash2508 4 роки тому +11

    I've been trying to make sense of debits and credits for 6 weeks of my first semester of school for my associates in accounting and I have been so lost. This helped tremendously!

  • @manaralsalim7530
    @manaralsalim7530 4 роки тому +7

    Your a living legend my man! I’ve been taking accounting for just over a year and never could wrap my head around the whole debit and credit situation but thanks to ur video I feel comfortable with this topic
    THANK UUUUUUUUU

  • @marysandee7647
    @marysandee7647 5 років тому +7

    FINALLY! Thank you for a tool to use when trying to figure out where to place the debits and credits. The arrows honestly simplified this for me and took away the great mystery that was leaving me to be so lost!

  • @xchanchanx
    @xchanchanx 5 років тому +7

    Incredibly helpful way of explaining to a math inclined, visual learner like myself. Bravo!

  • @hychua6452
    @hychua6452 4 роки тому +1

    Your explanation was excellent. Clear and simple to understand. Thank you!

  • @davekrug5465
    @davekrug5465 5 років тому

    This was the best explanation of debits and credits that I have encountered. I just couldn't wrap my head around it until now. This has helped me tremendously in my Accounting I class. Thank you!! Thank you!! Thank you!!

  • @maringuta6667
    @maringuta6667 5 років тому +10

    I've watched soooo many videos trying to understand this concept, but it finally clicked with your visual! Thank you for uploading!

  • @RapidEye1
    @RapidEye1 6 років тому +17

    Incredible! I never comment, but this time i had to. So clear and simple explanation. I have been wracking my brain for days to try and understand balance sheet accounting. This should be taught just like this in every accounting course!

  • @farizanroslan
    @farizanroslan 5 років тому +4

    Crystal clear! Thank you for explaining and sharing this wonderful lesson.

  • @mistybale3920
    @mistybale3920 7 років тому +21

    You my man are a bloody genius!!! Thank you for explaining it so I can understand. I have a test to complete and could NOT get this. Now it's simple. THANK YOU!

  • @lexorandipremier9427
    @lexorandipremier9427 6 років тому

    This is the best explanation of debits and credits I have ever seen. Ya see... HOW things are taught is as important as WHAT is taught. Well done, Al Wallace!

  • @Oscar-rd3bm
    @Oscar-rd3bm 2 роки тому

    Had so much trouble understanding other accounting videos you explained it so well that it was easy to understand. Others teach you like your in Harvard but you teach it so even a 6 year old can understand. Thank you very much.

  • @TheyDontKnowImHere
    @TheyDontKnowImHere 5 років тому +3

    Just wanted to say thank you. I’ve been struggling in my Accounting class for weeks now; everything seemed so complex and convoluted. This method is so beautifully simple and intuitive. You really made my day. I have some hope walking into my midterm this week. Thank you again so much for sharing this!!!!

  • @genevieveferrel8308
    @genevieveferrel8308 2 роки тому

    Wow!! Awesome video. The simple hands-on method that you teach made so much sense vs. having to guess which side the values are to be placed. Thank you

  • @kaygeebee
    @kaygeebee 5 років тому +3

    Fantastic. I also like to classify income and expense accounts separately so you can then demonstrate the linkage of the Income Statement to owners equity. Keeps things really clear.

  • @christibell7436
    @christibell7436 5 років тому +5

    Oh. My. Gosh. You actually made it make sense. I have been so confused for YEARS. THANK YOU SIR! You rock. Thank you for having a passion to teach. Thank you for teaching me.

  • @kulveit2901
    @kulveit2901 2 роки тому +4

    Genius. Although I've already understood the normal balances, but your perspective is really unique and easier to master. Many of my classmates are still confused at this matter, and my instructor can not find the other way to help them out. I gave this video thumbs up when I watched it at the first minute.

    • @Economics21st
      @Economics21st Рік тому

      Try this one: Anything which increases A-L-E is a debit. Anything which decreases A-L-E is a credit.

  • @fabuhaimed
    @fabuhaimed 5 років тому +1

    I really appreciate you, you master it very well. I was confused and could not absorb it. With your explanation, I will not miss it at all.
    Thank you

  • @davidkristianto2634
    @davidkristianto2634 7 років тому +1

    mind blown.... so this is how you visualize it! you're a life saver sir, thank you very much for this explanation.

  • @sbw1242
    @sbw1242 7 років тому +16

    Wow, you are amazing and I love the Arrow analogy. You make sense and it's very helpful! Thanks so much!

  • @abigailb8102
    @abigailb8102 6 років тому +3

    Thank you so much for this video! I could not understand the debit/credit concept in my accounting class for anything. Now it makes perfect sense!

  • @jennaburris9182
    @jennaburris9182 6 років тому

    I'm currently in an online 8-week Accounting class through Indiana University that is completely self-taught. I was really struggling to grasp the concept of debits and credits, but this one video helped me so much and made the explanations in my textbook so much clearer!

  • @angeliquecordes956
    @angeliquecordes956 4 роки тому

    I have been absolutely stumped by the concept of WHY things worked the way they did with T accounts in the expanded equation, and suddenly the lightbulb went off. Thank you!

  • @piranilife5197
    @piranilife5197 3 роки тому

    I have watched 15 videos trying to grasp this. Definitely the best video I have seen!

  • @andrewasonibare
    @andrewasonibare 5 років тому +1

    You, Sir Al Wallace, are a true hero, a hero's hero. This should be a Ted talk - thank you for taking the trouble to teach it!

  • @morganhayes728
    @morganhayes728 6 років тому +6

    Why did my professor not explain it this way? Thank you so much! You are a blessing.

  • @katherinegarcia4338
    @katherinegarcia4338 4 роки тому +1

    Spent 3 weeks in class lost with this concept, literally 5 minutes into this video it clicks. Thank you for explaining this!!!

  • @WendyMurray-j6h
    @WendyMurray-j6h Рік тому

    OMG - I have just watched about 6 videos trying to understand this and FINALLY I get it.
    You have explained it well! Thank you :)

  • @andrewfolse585
    @andrewfolse585 6 років тому +3

    Hands down BEST explanation on UA-cam!!!!!! Good work and thank you!

  • @cliffsmith4438
    @cliffsmith4438 6 років тому +2

    Thanks! Worked in a bank when i was younger, started my own business and struggled to understand why everything is backwards in accounts ever since. Never seen it explained till now.

  • @colond
    @colond 3 роки тому

    You took a confusing concept and watered it down to simplicity ... nicely done ... thanks for taking the time

  • @yeadon97
    @yeadon97 7 років тому +10

    I've been struggling so long now but finally got it thanks to this! Thank you sir!

  • @lauriereinhardtreif8169
    @lauriereinhardtreif8169 2 роки тому

    Thank you so much!! I could not understand this credit and debit concept. I was equating credit with plus and debit with minus and I was so confused! This make so much more sense! why don't they explain it like this in school?? feels good to get it!! I want to hug you.

  • @t-a9760
    @t-a9760 4 місяці тому +1

    Thanks for the great illustration, I just need to know if the equity & cash are affected by the bought of the asset. You mentioned that the account payable will increase, but I think by doing this the cash will decrease and the equity too..

  • @neondiamondsaquaberry17
    @neondiamondsaquaberry17 6 років тому

    Wow priceless video right here, I’m starting an accounting class in 4 weeks and this will be a tremendous help, thank you sir !

  • @philipweer7389
    @philipweer7389 6 років тому

    Wow!! Been through a number of videos trying to understand this, FINALLY !! Accounting made VERY easy. Thank you, thank you. Please post other accounting topics.

  • @angelenicole1243
    @angelenicole1243 4 роки тому

    That 0 just saved my life I've been watching UA-cam videos since 9 this morning and 2 days chapter reading and you put it in a way I can find the understand thank you so much

  • @Texas_Painter
    @Texas_Painter 6 років тому

    I FINALLY understand!!!!! Thank you for taking something so confusing and making it seem SO simple!!! Brilliant!!!

  • @henry6479
    @henry6479 6 років тому

    I've been through so much videos and lecturers explaining it to me, i finally can say I understood the logic. Your technique is amazing!!! Thank you so much! I nailed my MBA because i could not understand that tiny details!

  • @kseeley7082
    @kseeley7082 2 роки тому

    Wow! I understood immediately. I am in week three of Accounting one, training to be a bookkeeper. I already get it thanks to you!

  • @TheSamilyn
    @TheSamilyn 4 роки тому

    Excellent explanation, would have helped so much when I was still attending. Thank you for posting, I see in the comments it has helped many others.

  • @pora4
    @pora4 7 років тому +226

    12 weeks of uni, didnt get it, 5 mins here, understands it completely hahaha

    • @giulianasilva3579
      @giulianasilva3579 6 років тому +6

      Strongly agree.. I trashed $500 in my accounting class.. while here I leaned it for free..

    • @isapius2823
      @isapius2823 6 років тому +1

      hahaha very true.... now for i do most of leranings on youtube let it be on sickness, graphics, coding..all on youtube cause i easily understand here

    • @rajaismail8490
      @rajaismail8490 6 років тому +5

      So true! I watched hours and hours of videos, and still didn't get the Debit vs Credit concept, until I landed on this one. This has a simple formula to understand the two. Going towards or away from 0, is the best concept, a fundamental concept, to understand Debit vs Credit. Hats off to Al Wallace!

    • @TebogoMotlhale
      @TebogoMotlhale 5 років тому +2

      Yep ! i Don't remember how MANY times i've told people that if your child isNT excelling in Maths at school, the problem is . . . . . THE TEACHER, period ! Not that the teacher is GENERALLY BAD, but to be exact, the teacher is GOOD for OTHER kids, but his style of language, communication and choice of examples, do NOT match your child's WAY (style of language, comm., examples) of perceiving things, Teacher-to-Learner brain-wiring mis-match !

    • @DurgaTelugu76
      @DurgaTelugu76 5 років тому

      Hi sir nice Explanation of Dr.Cr. concept ...

  • @beatrizaguilar5705
    @beatrizaguilar5705 3 роки тому

    OMG, Thank you so much!!!! You are AMAZING!!!! Please keep making more great videos!!!

  • @BlueMoonKhoas
    @BlueMoonKhoas 6 років тому +2

    You saved my career choice! The towards zero concept really helped me connect some important dots!

  • @edwardbearjames2916
    @edwardbearjames2916 5 років тому

    I'm really impressed!! This is one of the hardest parts and you nailed it! Thank You! Great job!

  • @michaelgavin1909
    @michaelgavin1909 3 роки тому +1

    I know it's a bit late in the video, but for the cash for supplies example at 5:41 after the supplies have been used and no longer in the business do we alter the account further more? I can understand both sides of keeping supplies at $40 to show our cash expenditure and at the time the account's affected, but wouldn't there be an offset in the balance sheet if our supply asset decreases down to $0 after they've been used?

  • @Engine600
    @Engine600 7 років тому +1

    Thank you for explaining so we could understand it. I could not get it through my head until I watched.

  • @Adivhaho1
    @Adivhaho1 4 роки тому

    Thank you, your explanation was simple and easy to grasp.

  • @Masteridea101
    @Masteridea101 5 років тому +1

    man.... Great one.. 6 hours of mine cleared in 5 mins.. God bless u

  • @HP-jz9jd
    @HP-jz9jd 4 роки тому

    The first 1:39 of this video is exactly what I've been searching to understand this whole time! Thanks lol

  • @novellsaleh2434
    @novellsaleh2434 4 роки тому

    very helpful, you are such talented teacher.

  • @mzerocoolm1984
    @mzerocoolm1984 4 роки тому

    This has to be the BEST video ever explaining debits and credits!!!

  • @PPL4LF
    @PPL4LF 6 років тому +3

    Al, that was very easy to understand, thank you for making this recording, I look forward to watching your other instructional videos as well.

  • @MaryNkole-y6t
    @MaryNkole-y6t Рік тому

    I have always struggled to understand and remember debits and credits. However, after this video I won't forget thank you very much.

  • @leaneleonor954
    @leaneleonor954 6 років тому

    I just want to thank you!! Because with your technique i was able to help my sis with her assignment 😊😊😊😊😊

  • @WeQuiltStudio
    @WeQuiltStudio 6 років тому +1

    Al, thank you sooo much. This is the best accounting tutorial I have ever seen! I luv you for this!

  • @Hugo-xj2mj
    @Hugo-xj2mj 4 роки тому

    This video is so good my teacher showed it to us in class, and I'm from Portugal, thank you sir!

  • @jodikelley1854
    @jodikelley1854 6 років тому

    4 weeks of Financial Accounting I class and watching this video I get a lot better understanding after 12 minutes of video versus textbook reading after 4 weeks.

  • @daltonm8475
    @daltonm8475 7 років тому

    the feelings to finally understand this is incomparable, great explanation

  • @marissauzeta7174
    @marissauzeta7174 6 років тому

    the red and green arrows made it easy to understand where to place the transaction, thanks

  • @jordynbailey2987
    @jordynbailey2987 4 роки тому

    thank you so much for this video i’ve been trying to understand this for hours and i watched your video for a couple minutes and understood it!

  • @jspoosener6729
    @jspoosener6729 6 років тому +1

    This helped so much -- thank you. What a beautiful accent you have.

  • @bernadinep8529
    @bernadinep8529 3 роки тому +2

    Been in debit sucks. I took a risk management. I collected a loan from the bank and invested in Bitcoin forex trading. After making thousands of dollars from the trading market. I clear up my loan now I'm comfortable

    • @lucianorenzo1465
      @lucianorenzo1465 3 роки тому

      I don't think that's possible with the risk

    • @pascualreyes977
      @pascualreyes977 3 роки тому

      Risk management and trade are better by expensive account

    • @sarahgoerge
      @sarahgoerge 3 роки тому

      Bitcoin is by far the biggest Crypto market going on how.

    • @odalysaltagracia
      @odalysaltagracia 3 роки тому

      Bank this days invest with your money you saving with him. So They make profit while you don't. Instead your money drop in value when I been kept in the bank.

    • @odalysaltagracia
      @odalysaltagracia 3 роки тому

      So I'll advise any one to invest on bitcoin and be careful whom you invest with. That's why I chose to trade with a professional expert trader like Mr Sean

  • @catsarerude
    @catsarerude 6 років тому +2

    Thank you!!! Much easier when you have such a nice voice too!

  • @mohamedfarah7762
    @mohamedfarah7762 2 роки тому

    Your explanation is excellent thanks a lot.

  • @Nicholas-wb1lv
    @Nicholas-wb1lv 5 років тому +11

    The secret to debit is buy expensive things that are meaningless and won't appreciate with time , While the secret to Credit is investing in the little way you can for possible massive returns. It's funny how the school system don't teach that

    • @leduong5459
      @leduong5459 5 років тому +2

      Great point, It's funny how the school system teach a lot of irrelevant stuffs about credit instead going straight to the point and hit the nail on the head

    • @nevilleoscar6613
      @nevilleoscar6613 5 років тому +1

      According to statistics, the world will face a major economic recession in the coming year, and are you planning ahead for it?

    • @aldrichbyron5748
      @aldrichbyron5748 5 років тому +1

      @@nevilleoscar6613 During Economic Recession Millionaires are made in the wall street.

    • @derekrodney2932
      @derekrodney2932 5 років тому

      I want to make money too can anyone recommend me to any wall street trader?

    • @savedarchives243
      @savedarchives243 5 років тому +4

      ​ Derek Rodney I make more than 100% of my investment because i use the help of Mr Gregory Davids who is a Pro Investor from wall street. You can reach him on What(s)app #44 77 2371 6941
      gregorystevedavids (qt) g m q i l - c o m ...Pro Investors perform magic with their trading pattern and strategy

  • @accountingforbeginners9210
    @accountingforbeginners9210 3 роки тому

    There is a lot of good staff here,well done

  • @neebomar
    @neebomar 6 років тому

    Thanks so much for your video. It turned on the light and answered the question about banking!

  • @esmeraldamolina8769
    @esmeraldamolina8769 6 років тому

    Thanks for sharing! You simplified the concept tremendously. God Bless!

  • @EvolutionAutocrosser
    @EvolutionAutocrosser 5 років тому

    Fifteen years ago someone told me accounting is not about math - it’s about rules. I didn’t understand it. But now that I’m learning accounting it all makes sense. To learn accounting you must first learn the rules of accounting or it won’t make any sense!

  • @juancpgo
    @juancpgo 5 років тому +1

    In your last example (photography shop), when the bank charges a $20 service, I could also say that this transaction will increase the bank's assets by $20, and thus, because in your method Assets increase to the left, then it should represent a DEBIT instead (debit=left). Can you tell me why this reasoning is wrong?

  • @jendean6869
    @jendean6869 5 років тому

    Really good explanations with the examples - Thank you

  • @billygoe6179
    @billygoe6179 6 років тому

    This is an excellent explanation of debits and credits.

  • @sobeg
    @sobeg 4 роки тому

    Classic discussion and presentation. Nice.

  • @trishao3308
    @trishao3308 6 років тому

    thank you!! I'm so happy I found this video. I was so lost about debits and credits. life saver : )

  • @mylilpc
    @mylilpc 4 роки тому

    OMG thank you for this! The diagram helps so much.

  • @timmyotoole6063
    @timmyotoole6063 7 років тому +10

    I feel like T accounts make learning accounting so much more confusing than just seeing entries be made straight to the journal

    • @xinronghao7648
      @xinronghao7648 4 роки тому

      You need to categorise transactions process the information that’s what accountants are paid for

  • @japhethlau5456
    @japhethlau5456 7 років тому +1

    I cant thank you enough. Brilliant Work

  • @jamilajones2877
    @jamilajones2877 5 років тому

    You are the greatest being of all time for this video!!!!

  • @lisamccray6481
    @lisamccray6481 4 роки тому

    That zero in the middle thing and red and green arrows got me off the bench and into the game. More, more, more!!!

  • @Techwem
    @Techwem 6 років тому

    You deserve millions of likes from my side...brilliant explanation and clarity personified

  • @donnagarcia2590
    @donnagarcia2590 5 років тому

    Thank You! Great visual and explanation.

  • @Mexicana73
    @Mexicana73 4 роки тому

    Very well explained. Thank you so much!

  • @dipeshshahus
    @dipeshshahus 4 роки тому

    Thank you very much sir. I understood in 5 minutes.

  • @jayvincent1617
    @jayvincent1617 6 років тому +1

    Thanks for this video! My textbook confused me, but this cleared it up!

  • @fredsalfa
    @fredsalfa 5 років тому

    Thanks. Took me years to figure this out. You explained it in 10 mins.

  • @Mebeece
    @Mebeece 5 років тому +1

    Thank you.
    And Thank You for explaining why I was confuse in the first place.

  • @davidazinger5639
    @davidazinger5639 5 років тому +1

    toward the zero is brilliant !!! thanks for video !!!! one question: the service charge revenue is $20 credit and $20 debit to Customer deposit -- but it balances on the same side of the equation one is liablity other is OE. why is there is no balance to the asset side of the equation??

  • @christopherwillson
    @christopherwillson 2 роки тому

    It's insane that we haven't found a better way to do this that people can understand easily

  • @ahmedsurajuddin967
    @ahmedsurajuddin967 6 років тому +3

    this is by far the best technique to use debit/credit jargon !!

  • @tjo230
    @tjo230 6 років тому

    Whaoo. In 12 minutes you simplified an otherwise complex process. Thanks

  • @catherinejones123
    @catherinejones123 6 років тому

    You are an amazing teacher. The first time it got through to my brain. Lol

  • @TheDigitalAgeSage
    @TheDigitalAgeSage Рік тому

    Explaining that its NOT (+) or (-) on each side VERY important. Thanks!

  • @ShawnFX
    @ShawnFX 10 місяців тому

    I have been interviewing for entry level accounting jobs and I might be getting one soon (depending on how tomorrow's call goes, wish me luck) so I'm here to understand accounting concepts that I learned 3-4 years ago but have forgot

  • @salshe1
    @salshe1 7 років тому

    This has been the best video ever on this topic!

  • @thomasputich1806
    @thomasputich1806 18 днів тому

    Another way is to remember: more assets is a debit (mihi debitum, owed to me); the two parts on the right side are the mirror of the left; the left is the mirror of the right. Nice explanation of debit card; it's a debit on the bank's book. If you see debit and credit in your check register, they are debits and credits on the bank's book, not yours. On your book it's a change of assets.

  • @joecubjr
    @joecubjr 6 років тому

    Thank you for helping me to finally comprehend for my Intro to Accounting class. I was starting to think accounting wasn’t for me. :)

  • @johnquealy9426
    @johnquealy9426 4 роки тому

    Good video with some really interesting stuff at the end.

  • @odonodave
    @odonodave 4 роки тому

    You are a legend!!! Thanks mate!