"It is what it is...that's why."

So there I was, sitting in my first accounting class, and the professor comes in and start talking about debits, credits, journal entries, ledgers, Spongebob, and Amish cookies. I sat in complete and utter confusion at the very mention of these seemingly foreign accounting terms. Previously, I had assumed debits were good and credits were bad. Why? I don't know. I left the class with a stark realization: I was ignorant. I went back to my dorm and stared at the wall, remarking to my roommate that I would be committing the coming months to learning a third language: that of the accountant. Thus my endeavor began...

Debits and credits.

I open my textbook and thumb through a few pages, writing down what I found to be important terms. After what seemed like hours of reading, I attempted a practice question - I believe it was just a simple journal entry. Anyways, despite the time I had spent reading, I had missed the most basic concept in accounting: debits vs. credits. I remember my professor stressing these terms in class, labeling them as simply "left" and "right", respectively, but I still couldn't grasp why they are the way they are. The professor dressed this in what I legitimately believe to be the most accurate description of accounting possible: "It is this way, because somebody said it was to be, so we accepted it" (paraphrased). That's about right.

To be more specific, debits and credits comprise the general method by which transactions are recorded in a way that increases or decreases an account. Common types of accounts are as follows:
ASSETS, DIVIDENDS, and EXPENSES (which are increased by a debit) as well as LIABILITIES, EQUITY, and REVENUE (which are increased by a credit). When something is considered to be increased by either a debit or credit, it's normal balance will be considered what it is increased by (a Dr. or Cr.). This trend also works inversely, a credit will decrease the accounts that are increased by a debit, and vice versa. This may seem confusing if you've never seen these terms matched with an actual representation of the action. Here is a simple example of a debit and credit involving assets.

Company X buys a truck, which is considered an asset. To record this transaction, the company will state that the asset account was increased in the debit column by the value of the truck, also including a decrease in cash (also an asset) used to buy the truck to be recorded as a credit. The journal entry is as follows:
                                                         Dr.       Cr.      
                       TRUCK                 20,000
                                    CASH                   20,000

You will notice that there were two entries recorded above; this is known as a DOUBLE-ENTRY. A double-entry system requires that any transaction be recorded in at least two accounts. As exemplified, one account will be debited while the other(s) being credited, so as to either increase or decrease the accounts accordingly.

For those who are new to accounting, like myself, I would recommend diving into a textbook and watching YouTube videos. Simple repetition of terms will also be an effective method of remembering how to go about handling the recording of transactions with debits and credits. I have read about 350 pages of my textbook in just a few short weeks, and plan on reviewing and reading more so that I may no longer be ignorant of the art of accounting.

A final note, this stuff is pretty easy, and as my professor reminds us weekly, "people will give you money...and lots of it" if you learn to love accounting. Let's just say I'm still learning (I'm and ECON major with no clue what I can do with it. Accounting might be calling my name...).

Here's a haiku I wrote:

I debited cash,

What a joyous transaction.

Then, 'twas credited.