Cash is King: An Easy Way to Understand Debits and Credits

Abstract

In Accounting, it is a well-known problem that many students often have difficulty in deciding whether to debit or credit an account to increase its balance. After practicing and teaching Accounting for more than forty years, the authors have developed a simple, practical and fault-proof method of handling debits and credits--the Cash is King method. Ten representative examples are provided to demonstrate how to use the Cash is King Method to assist the students handle debits and credits and guide them in recording all accounting transactions correctly.