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← Chapter 3 · Elements of Financial Statements and the Accounting Equation
In these notes · Debit and Credit — A Quick Primer
Debit and Credit — A Quick Primer3.1The Five Accounting Elements3.2Debit and Credit Rules3.3The Accounting Equation3.4Accounting Entity Theory3.5Linking Elements to Source Documents (C2 Review)Chapter Summary
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Debit and Credit — A Quick Primer

Key Concepts

Every account in accounting has two sides — a left side called the debit (Dr) side, and a right side called the credit (Cr) side.

Left sideRight side
Debit (Dr)Credit (Cr)

"Debit" and "Credit" are simply names for left and right. They do not mean "increase" or "decrease" on their own — the effect depends on which accounting element the account belongs to.

Each accounting element has a natural side — the side it normally sits on, and the side that increases it. The sections that follow introduce the five elements and their natural sides, then set out the full debit and credit rules.