Understanding Accounting Made Easy: My Journey to Clarity
Understanding Accounting Made Easy: My Journey to Clarity Hey everyone! 🌟 I recently dove into the world of accounting, and let me tell you, it felt overwhelming at first. But with persistence and a practical approach, I finally gained clarity, and I want to share what I’ve learned so it might help others too! The Problem I couldn’t understand why the messages from my bank (like "Your account is credited with ₹5,000") seemed opposite when writing journal entries. It felt confusing to figure out which accounts to debit or credit. Bank Message vs. Accounting Entry Yes, this was a huge "aha!" moment for me. Here’s the explanation: When you receive money (message: "Your account is credited") : Bank's perspective : They have credited your account because they owe you more now. Your accounting entry (opposite): Debit : Bank Account (because your money increases). Credit : Sender or Income (because someone gave you money). When you pay...