DEAD CLIC: Master Debit & Credit Rules!

Confused about when to Debit and when to Credit? Unlock the secret to flawless accounting entries with a simple, unforgettable rule!

Subject: Accountancy • Classes: 11–12 • Difficulty: intermediate

The Trick

The 'DEAD CLIC' rule simplifies the Modern Approach to Debit & Credit. Think of two groups: DEAD and CLIC. **D.E.A.D.** accounts (Drawings, Expenses, Assets) **increase with a DEBIT**. They decrease with a Credit. **C.L.I.C.** accounts (Capital, Liabilities, Income/Revenue) **increase with a CREDIT**. They decrease with a Debit. This rule directly links to the accounting equation, ensuring balance in your books. Remember, it's about the *increase* in these accounts.

Mnemonic: DEAD CLIC

Step-by-Step

  1. Identify Account Type — Determine if the account is a Drawing, Expense, Asset, Capital, Liability, or Income/Revenue.
  2. Identify Impact — Is the transaction causing the account balance to increase or decrease?
  3. Apply DEAD CLIC — If it's a DEAD account (Drawings, Expenses, Assets) and it's increasing, DEBIT it. If it's a CLIC account (Capital, Liabilities, Income) and it's increasing, CREDIT it. Reverse for decreases.

Frequently Asked Questions

Does 'DEAD CLIC' cover all types of accounts?
Yes, it covers the five main categories: Assets, Liabilities, Capital, Expenses, and Revenue, plus Drawings which is crucial for capital adjustments.
What if an account decreases instead of increases?
Simply do the opposite! If a DEAD account decreases, Credit it. If a CLIC account decreases, Debit it.

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