Double-entry bookkeeping

[baranovskaia]

Hello everybody. I am a first-year tourism student. Recently, we have started a course called Basics of Accountancy. The current topic is Double-entry bookkeeping. We are being taught that the same amount of money goes both to the debit side and the credit side. For instance, investing capital means adding the money both to the debit side in Cash Account and to the credit side in Credit Account. However, I do not understand this. As far as I am concerned, when we get some money, it goes to the debit side and when we spend some money, it goes to the credit side. I would like to get some help on this topic because I need to get clarifications.

 

[Macmacmac]

Hello everybody. I am a first-year tourism student. Recently, we have started a course called Basics of Accountancy. The current topic is Double-entry bookkeeping. We are being taught that the same amount of money goes both to the debit side and the credit side. For instance, investing capital means adding the money both to the debit side in Cash Account and to the credit side in Credit Account. However, I do not understand this. As far as I am concerned, when we get some money, it goes to the debit side and when we spend some money, it goes to the credit side. I would like to get some help on this topic because I need to get clarifications.

DEBIT means
Increase in ASSET, DRAWING, EXPENSES
decrease in LIABILITY, CAPITAL, REVENUE

CREDIT means
Increase in LIABILITY, CAPITAL, REVENUE
decrease in ASSET, DRAWING, EXPENSES