Hey, in this article I'm gonna explain to you what David and Credit aren't On accounting basics. below To properly understand David's and credits I think it's important to make a couple of points clear so we can remove any missed conceptions Of all financial transactions I had to come out from another Steve's cash. I was saying that accountants consider every transaction to involve a flow of economic benefit from a source to a destination. It will also be expensive when a business pays a third party for a good or service they are provided Such as amounts owed to banks in exchange for a loan or to suppliers for providing a good or service and revenue. So let's bring back up that accounting equation that we discussed in the previous article and I'll prove this to you However, equity is a tricky one. To understand it properly, we have to expand it into the components that make it up Equity equals owners equity paid in less dividend paid out plus retained earnings In an Accounting equation with revenue less expensive we have equity equals owners equity paid in fewer dividends plus revenue fewer expenses And decrease my credit D E A L E R Or double-sided nature of all financial transactions debits represent the flow of economic benefit to the destination credits represent the flow of economic benefit from the source Flight kids through the accounting equation which can be expanded and rearranged to show as dividends plus expenses plus acids are equal to liability plus only back to paid in plus revenue and easy way to remember this is dealer thanks for reading the article if you found it useful give it a like That's all for today. See you next time