The debit and credit nightmare
13 September 2012
Double-entry is very basic to accounting but not necessarily easy to grasp. There are many ways to explain how it works, and this is one of them.
After 30 years of teaching accounting, I get a warped sense of delight when I ask students who have been exposed to some accounting to explain debit and credit. Following a first reaction of ‘this guy must be a nut’, they will fumble around with debit being somebody that owes the business money and credit being the business owing somebody else money. Or maybe it’s the other...