Debit/Credit - demystifying
Remember back in grade school when you were learning positive and negative numbers, they showed you a number line? There was zero in the middle and positive went to the right and negative went to the left. Turn that number line on its’ end so positive is up and negative is down.
Debits increase, positive goes up. Credits decrease, negative goes down.
When you have a negative balance, you owe money, that balance (credit) would be low on the number line, below zero. Then when you pay the bill, you debit the account. A debit increases right? Look what happened to the point on the number line, it increased, it went closer to zero.
Well simplistic maybe but it helps me keep it straight.
You can skip to the end and leave a response. Pinging is currently not allowed.