tally.
FOUNDATIONS 5 MIN

Debits and credits, explained with a laptop

Two sides. One story.

Try the interactive lesson
01 · THE IDEA

Let’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.

02 · IN EVERYDAY LIFE

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.

03 · YOUR TURN

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.

04 · CONNECT THE STEPS

Build the bigger picture.

  1. Identify the transaction
  2. Choose the accounts
  3. Record debits and credits
  4. 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