Debits & Credits Explained: Stop Thinking Debit = Bad

Debit does not mean bad, and credit does not mean good. In accounting, debit simply means the left side of an account and credit means the right side. In this lesson, we break down normal balances, the DEALER mnemonic, double-entry accounting, and several journal-entry examples so you can understand the logic instead of memorizing rules. You’ll see why Cash can increase with a debit while Revenue increases with a credit, how expenses work, and how to decide which account gets debited or credited. CPA Eventually is about understanding the why behind accounting so the rules actually make sense. Chapters: 00:00 Debit Does Not Mean Bad · 00:25 What Debit and Credit Actually Mean · 00:45 Double-Entry Accounting · 01:10 Assets and Cash · 01:35 Liabilities, Equity, Revenue, and Expenses · 01:50 The DEALER Mnemonic · 02:13 Owner Contribution Example · 02:40 Revenue Example · 03:15 Expense Example · 03:34 Equipment Purchase Example · 03:58 How to Decide Debit or Credit · 04:35 Final Recap