This course continues our exploration into the bookkeeping function. We introduce the concepts of single-entry and double entry bookkeeping as well as the accounting equation.  This allows us to delve into examining the concepts of how to utilize debits and credits within financial accounting including assets, liabilities, equity, revenue and expense.  It is imperative that a bookkeeper have a strong grasp on the utilization of debits and credits.

“A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.”

“A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.”

Following is a summary of how debits and credits impact the financial statement accounts

Category

Increase Acct

Decrease Acct

Assets

Debit

Credit

Liabilities

Credit

Debit

Equity

Credit

Debit

Revenue

Credit

Debit

Expense

Debit

Credit

This session utilizes multiple examples of how to apply debits and credits within various transactions and entries and provides the participant with a foundation of the concept of how to utilize the double entry bookkeeping system.

In addition, we examine a few of the many functions the bookkeeper can be involved with as part of their overall responsibilities. 

NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation to a career as a bookkeeper. 

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Learning Objectives
  • Explore double entry bookkeeping.
  • Identify the accounting equation and recognize how to apply the accounting equation approach.
  • Explore bookkeeping processes managed by the bookkeeper.
  • Explore the process of recording debits and credits.
  • Recognize how to apply the account debit and credit process to the balance sheet and income statement.
  • Explore example entries using typical accounts and processes.
Last updated/reviewed: March 25, 2024

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesProfessional Bookkeeping Certification

  1. Bookkeeping: Terminology and Process Execution
  2. Bookkeeping: Debits And Credits
  3. Bookkeeping: Cash vs. Accrual
  4. Bookkeeping: Payroll And Expenses
  5. Bookkeeping: Legal Entity And Chart Of Accounts
  6. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  7. Bookkeeping: Responsibilities
  8. Bookkeeping: Fixed assets and inventory
  9. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  10. Management Internal Control Essentials
  11. GAAP Principles, Assumptions and Considerations
  12. GAAP Presentation of Financial Statements
  13. Bookkeeping Basics – Case Study Scenario
  14. Useful Bookkeeping Tools
89 Reviews (365 ratings)

Reviews

5
Anonymous Author
The courses are well taught. I did however need some more information, communication is pretty responsive. I prefer live help during my learning courses but overall it's an online course that is helpful and informative. I do enjoy that you can download the manuals after and keep them for future use. You can study on your own time which is a great plus and super helpful.

4
Member's Profile
Overall this showed a concise overview of how credits and debits are recorded on balance sheet. The information was good, however the assessment did not cover more of the technical meat of the course. I would appreciate more interactive testing, perhaps having to balance our own balance sheet, given only a few entries.

5
Anonymous Author
I learned from the course about the debit and credit as well as the basic functions of a bookkeeper: such as processes related to payroll, procurement and inventory, sales, and expenses. I also learned the accounting equation: assets = liabilities + equities.

4
Anonymous Author
This course was great for the understanding of accounting debits and credits and the corresponding account balances for assets, revenues, liabilities, equity and expenses. Examples were provided and would be helpful to those new to accounting.

5
Member's Profile
Lynn Fountain delivers a very clear and thorough presentation with varied examples. The examples covered both sides of the accounting equation, which is a great refresher for real-life double-sided entries. Slides were super helpful as well.

3
Anonymous Author
Maybe its because I have little to no knowledge of this subject but I think the instructor speaks too fast and doesn't fully explain things completely. Perhaps I chose the wrong program but here I am, just trying to learn.

5
Anonymous Author
I liked this course as it was very basic but also covered a lot of critical points. This was one of the most straight forward courses and would defiantly come back and review the materials. would totally recommend it.

5
Member's Profile
The course clearly explained how to record debits and credits based on the type of transaction. It used very helpful examples and I loved refreshing which accounts have a normal debit or credit balance.

5
Member's Profile
Lynn is simply the BEST on Illumeo. She is my go to Course Presenter when she covers the topic/s I am interest in. This course is a good basic review of the materials presented. Thanks again Lynn.

2
Anonymous Author
This course was difficult with little to no background. The examples were unclear at times, and confusing. Lots of good information in this lecture, however it could have been laid out differently.

4
Anonymous Author
The course was very helpful describing the many functions of debit and credit. The responsibilities Payroll. The most interesting was the formula used for debits, credits and equity.

4
Anonymous Author
Good course and a lot of good examples were given. I think more basic information could have been provided at the beginning on the different debit & credit accounts as to 'why'

4
Member's Profile
Great content and good examples. The slide presentation provides valuable information. The instructor also provides a list of vocabulary and common acronyms which is helpful.

5
Anonymous Author
Refresher course on debit and credit entries and what the functions of a bookkeepr would be in an organization. Love Lynn's courses, they are practical and well organized.

5
Anonymous Author
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4
Anonymous Author
Good introductory course for all accountants and bookkeepers. This is also a great refresher to those who have been out of the field for an extended period of time.

5
Member's Profile
Gives out great examples of Debits and credits. How certain accounts are classified as a credit and what impacts another account to be classified as a credit.

5
Anonymous Author
For me this was a very good review and reinforcement of the debit and credit concepts. I really appreciated the different examples that were given.

4
Anonymous Author
In double entry bookkeeping, debits and credits are entries made in account ledgers to record changes in value resulting from business transactions

5
Member's Profile
This was a great presentation on the basics of bookkeeping. The instructor was very informative and good at keeping my interest in her presentation.

5
Anonymous Author
Good information for introduction to bookkeeping. A bit basic for those already earning CPE credits for the CPA license. Excellent instructor.

5
Anonymous Author
good overview of bookkeeping functions at a company. Clearly breaks out the role of the bookkeeper versus the accounting managers at a company.

5
Member's Profile
Good information. For an non initiate it can be useful to draw the concepts of debit and credit to have the clear picture... but very clear...

3
Anonymous Author
Great simple summary of the segments of accounting along with the main responsibility of the bookkeeper in regard to each of the main areas.

4
Anonymous Author
A little challenging for someone without an accounting background, but am discovering areas I should learn more about for my small business.

4
Member's Profile
The course was good and thorough I do not have any more to say and do not really need any. More to say that the course was good and thorough

5
Anonymous Author
This was a great course. I enjoyed the refresher on all of my accounting basics and applying it to the bookkeeping aspect of my job.

5
Anonymous Author
This course made it easy to understand the differences between what makes up for debits and credits in a business' processes.

5
Anonymous Author
I was happy to relearn the concepts here. Debits and credits are confusing I was glad there was the glossary to help me out.

5
Anonymous Author
I feel most engaged when Lynn is present in a slide. The images/clipart examples really helped drive this information home!

5
Member's Profile
Good basic information on what the role is of bookkeepers and some of the basic financial transactions they need to record

5
Member's Profile
I enjoyed this course, it was fairly easy to follow and understand. The instructor offers a lot of guidance and expertise.

5
Anonymous Author
This is a great review. Also provides a different perspective on the accounting cycle than I normally would encounter.

5
Anonymous Author
Good overview of the bookkeeping function and details about the double entry accounting system. Good for beginners.

4
Member's Profile
Clears up the debits and credits. Feel a little better about understanding it. So many functions for bookkeeping.

5
Member's Profile
The course highlights a clear understanding of General ledger (GL) accounts and key terminologies in GL management

5
Member's Profile
This course is very informative, the instructor explains everything in detail and then does a good job reviewing.

4
Anonymous Author
Great!!!!!..................................................................................................

5
Anonymous Author
Very good basic course for entry level accountants, or a good refresher for anyone in the accounting roles.

5
Anonymous Author
This course provided a series of great examples of debit and credit entries along with practice problems.

5
Anonymous Author
This was a helpful course that used the allotted time effectively to meet the stated learning objectives

5
Anonymous Author
good course

4
Member's Profile
Great course on basics of debits and credits. Good for those looking to develop a bookkeeping business.

5
Anonymous Author
The examples really helped understand the differences between credit/debit during certain transactions.

5
Anonymous Author
the course was very informative and the examples were on point. The example drove the learning home.

4
Anonymous Author
Good course explaining debits and credits. Good for beginners or people who just want a refresher.

5
Member's Profile
This was very informative. I liked the way everything was explained and I printed out the PDF.

5
Member's Profile
awesome course, definitely learned a lot here. great knowledge on bookeeping responsibilities

5
Anonymous Author
This has been a fun way to spend one hour and learning something to keep my license active.

4
Anonymous Author
A good basic course

4
Member's Profile
Great instructor, I enjoyed most reviewing the typical activities and role of bookkeeper.

4
Anonymous Author
Difficult, but not impossible to understand without a finance or accounting foundation.

5
Member's Profile
Thank you! I have a much better understanding of Debit/Credits and how to record those!

5
Member's Profile
This is a bit more difficult. The examples are very good and the instructor is great.

4
Anonymous Author
Great refresher course for remembering how particular transactions affect the BS/P&L.

5
Anonymous Author
Great overview of debits and credits. Explained using examples which is very helpful

4
Member's Profile
I thought the information was clear and precise and the examples were very helpful.

5
Member's Profile
This one is a little confusing but the explanations in the video was very helpful

5
Anonymous Author
Excellent basic course! Appreciate the logic of the presentation. Good course.

4
Member's Profile
Need to have a printable review question page, but overall it is well presented.

5
Anonymous Author
This was very helpful in understanding the debit and credit process of accounts.

5
Member's Profile
Great quick review of lots of information. Easy format and examples presented.

4
Member's Profile
Excellent review for someone with previous knowledge needing a thorough review.

4
Anonymous Author
Good intro for new bookkeepers or those that have not practiced in some time.

4
Anonymous Author
anyone that works in a business office would get the most from this course

5
Anonymous Author
Good review of bookkeeping responsibilities. Worth taking as a refresher.

5
Anonymous Author
Basic but informative. Good overview of the accounting process and flow.

5
Member's Profile
Good foundational course on bookkeeping, thorough and well laid out.

4
Anonymous Author
Good overview of accounting 101 for debits / credits / trial balance

5
Anonymous Author
Excellent course that was very well presented with clear examples.

4
Member's Profile
Bookkeeping: Debits And Credits - easily the best course of 2023.

5
Anonymous Author
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4
Anonymous Author
Lots of helpful information. Easy enough for beginners to follow

5
Anonymous Author
Great course and very easy to follow throughout. Great refresher

5
Anonymous Author
This course made it very easy to understand debits and credits.

4
Anonymous Author
It was comprehensive but also went over the same things too much

5
Anonymous Author
Good course. Brief but informative. Helpful examples at the end.

4
Member's Profile
Easy subject and proper;y explained for students understanding.

4
Anonymous Author
This is a good base foundation for grasping Debits and Credits.

5
Anonymous Author
This course was a good refresher on Bookkeeping Debits Credits.

5
Member's Profile
Very helpful and straightforward review of bookkeeping basics.

5
Anonymous Author
Great overview of bookkeeping delivered in a succinct manner.

5
Anonymous Author
Great introductory course. I would recommend for beginners.

5
Member's Profile
Very helpful! It's a great course. Easy to follow and read

5
Anonymous Author
Clear and concise content - easy to understand and apply.

4
Anonymous Author
This is a very informative segment on debits and credits

5
Anonymous Author
The content of this course was very easy to understand.

4
Member's Profile
This is a good basic course to accounting fundamentals

5
Member's Profile
Good instructor. Good review of bookkeeping skills.

Prerequisites
Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Bookkeeping Basics– Processes and Debits and Credits1:33
  Double Entry Bookkeeping3:29
  Accounting Equation7:35
  Bookkeeping Functions17:02
  Debits and Credits4:55
  Assets/Liabilities/Equity9:58
  Examples13:37
  Summary1:44
CONTINUOUS PLAY
  Bookkeeping Basics– Processes and Debits and Credits59:54
SUPPORTING MATERIALS
  Slides: Bookkeeping Basics – Processes and Debits and CreditsPDF
  Bookkeeping Basics – Processes and Debits and Credits Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam