Why are Debits & Credits BACKWARDS?

why are debits and credits backwards here's the situation you head to the bank and deposit some cash into your checking account what does the bank do they credit your account to increase your balance and when you withdraw cash they debit it but hang on in accounting cash is an asset a normal debit account so debits increase cash and credits decrease it who actually both of you liability not an asset so when you deposit money the bank debits its own cash account increasing it and they credit your checking account increasing their liability owed to you

Channel: Accounting Stuff

Views: 48,024

Keywords: accounting, accounting stuff, accounting basics, debit, credit, debits and credits, debit and credit, debit credit backward

Id: _aX1qNlUKCA

Length: 0min 51sec (51 seconds)

Published: Mon May 29 2023