28/01/2026
How To Remember Debits and Credits in Accounting (DEAD CLIC)
Double entry is a fundamental theory to master in the world of accountancy and as an accountant, it is important to fully understand the concept.
One of the most common questions asked in the accounting world is “what is the double entry for ______?”
Even if you haven’t fully got to grips with double entry just yet, there is an easy way to remember which way round the debits and credits should be entered for any transaction.
That is to remember the mnemonic DEAD CLIC.
DEAD CLIC is a simple memory aid that helps you remember which accounts increase with debits and which increase with credits.
DEAD Accounts
These accounts increase with Debits and decrease with Credits.
D – Drawings
Owner’s withdrawals for personal use.
E – Expenses
Costs incurred to run the business, such as rent, salaries, utilities.
A – Assets
Resources owned or controlled by the business, such as cash, inventory, equipment.
D – (Repeat emphasis)
Drawings are often highlighted twice in teaching to avoid confusion with expenses.
CLIC Accounts
These accounts increase with Credits and decrease with Debits.
C – Capital (Equity)
Owner’s investment and retained earnings.
L – Liabilities
Amounts owed to outsiders, such as loans and payables.
I – Income (Revenue)
Money earned from business activities.
C – (Closing reminder)
Credits increase claims against assets.
Why DEAD CLIC Works
It aligns perfectly with the accounting equation:
Assets = Liabilities + Equity
• Assets and expenses reduce equity when they increase, so they sit on the debit side.
• Liabilities, income, and capital increase equity or claims on assets, so they sit on the credit side.
Quick Summary
Debit increases:
Assets
Expenses
Drawings
Credit increases:
Liabilities
Income
Capital
Once you understand DEAD CLIC, debits and credits stop being confusing and start making sense logically.
Accounting Knowledge Concepts
