Debits and credits, explained with a laptop
Two sides. One story.
Try the interactive lessonLet’s make it simple.
Every transaction has at least two sides. Debits go on the left, credits on the right. Total debits always equal total credits.
Picture this.
Buy a $500 laptop with cash: debit Equipment $500 (an asset goes up), credit Cash $500 (an asset goes down). Debit doesn’t always mean “increase”: it depends on the account.
Check your understanding
You buy a $500 laptop with business cash. Which accounts do you debit and credit?
Think it through, then reveal the explanation
Debit Equipment: your equipment increases. Credit Cash: your cash decreases. The $500 entries balance.
Build the bigger picture.
- Identify the transaction
- Choose the accounts
- Record debits and credits
- Check that both sides balance
Follow the transaction from its story to a balanced journal entry.
Now make it move.
Bring this idea to life with interactive practice, a 3D illustration and tips along the way. Your progress stays on your device.
Practice Debit & Credit