Basic Accounting Concepts 2 – Debits and Credits
A tutorial to help you understand the bookkeeping/accounting concepts of Debits and Credits
Most people don’t find the math of Accounting as difficult as understanding the concepts of accounting, and for many there is no more difficult concept to grasp than that of Debits and Credits. Now the concept of Debits and Credits is actually more than 500 years old, being used extensively by the Venetian merchants of Italy in the 15th century Renaissance period. The concepts were first documented in Latin in the 1400’s and were later translated into English in the 16th century. Is it any wonder then, with the passage 500 years, that we may have become a little confused about the original meaning and concepts, particularly with the English language adopting new legal and everyday meanings for these age old words. So it may be beneficial then, as we try to understand the concept of Debits and Credits, to go back to where it all begun … but first some background.
Basic accounting concepts – for bookkeeping students
This training session is targeted at students who have a desire to learn more about bookkeeping. While specifically developed for students other people interested in understanding more fully the accounting concepts, may also find this training session beneficial.
Credits, debits, firm, accounts, accounting concepts, bookkeeping, financial transaction, accounting system, Luca Pacioli, account group, double entry bookkeeping, duality of financial transactions.
- What is the origin of Debits and Credits?
- Why was it called Debit and Credit?
- What are the underpinning concepts for Debits and Credits?
- How would they have applied Credits and Debits in the 1400′s?
- Is there another way to look at applying Debits and Credits?