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Because bookkeeping’s debits and credits are different from the ones you’re used to encountering, you’re probably wondering how you’re supposed to know whether a debit or credit will increase or decrease an account. Believe it or not, identifying the difference will become second nature as you start making regular bookkeeping entries. But to make things easier, Table 1-1 is a chart that’s commonly used by all bookkeepers and accountants.

Table 1-1 How Credits and Debits Impact Your Accounts

Copy Table 1-1 and post it at your desk when you start keeping your own books. It will help you keep your debits and credits straight!