How Does DEBITS & CREDITS: Explained in (Almost) 2 Minutes! Work?

Imagine you have a piggy bank that can give money to your friends and also receive money from them, debits are like when you take out money, and credits are like when someone gives you money.

Let’s say you have 10 candies. If you give 3 candies to your friend Sarah, that’s a debit for you (you lost candies), and it's a credit for Sarah (she gained candies). Now Sarah has more candy, and you have less, but both of you know exactly how many candies each of you has.

Your piggy bank is like a special notebook that writes down every time you give or receive something. When you take out money (or candies), it says “debit.” When someone gives you money (or candies), it says “credit.” At the end of the day, you can look at your piggy bank and see how much you have left, just like seeing how many candies are still in your hand.

It’s like playing a game where everyone knows what they gave and what they got, no need for secrets or magic!