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In this particular episode, you will learn

  • What "it" is all about

Accounting Play and I trying to get paid
(My company is trying to make money)
Debit assets up, credit them down
(Assets increase with a debit and decrease with a credit)
San Francisco livin’ - up town
(I live in San Francisco in a nice area)
Now listen up - to the CPA sound
(Listen to what a Certified Public Accountant has to say)

Hook:

Debit cash up, credit down
(Assets increase with a debit and decrease with a credit)
Other side now, flip around
(The other side of the balance sheet is liability and equity, which increase with a credit and decrease with a debit, the opposite (flip) of assets)
I got revenue credits, expenses as debits
(Revenue increases with credits and decreases with debits)
(Expense increases with debits and decreases with credits)
Debit left, credit right - balance sheet so tight
(Debits are on the left side of the T-account and credits are on the right side of the T-account)
(Total debits always equal total credits on the balance sheet)

Liability, not for me you see

(Liabilities are traditionally viewed as a bad thing for a company, but it depends)
Drop down with a debit, come up with a credit
(Reduce liability with a debit and increase with a credit)
I ain’t no nerd, no cash deferred
(I am not boring and I do not have any deferred revenue, a liability account)
Down down with a debit, up up with a credit
(Reduce liability with a debit and increase with a credit)

Reppin’ S.F.C., profits - to equity

(I am representing the city of San Francisco and I close my profits out to retained earnings)
Drop down with a debit, come up with a credit
(Reduce equity with a debit and increase with a credit)
Earnings retained, CPA brains
(I have accumulated profits and I am a smart Certified Public Accountant)
Down down with a debit, up up with a credit
(Reduce equity with a debit and increase with a credit)

Hook:

Debit cash up, credit down
Other side now, flip around
I got revenue credits, expenses as debits
Debit left, credit right - balance sheet so tight

Revenue credits, expenses as debits

(Increase revenue with a credit and reduce with a debit)
(Increase expense with a debit and reduce with a credit)
Fo’ my profit and loss, CPA Boss
(A profit and loss statement is comprised of revenue minus expenses)
Revenue credits to the sky so high
(Revenue is increased with a credit)
Without a doubt - expenses debit out
(Expenses increase with a debit)

Balance sheet impeccable, assets, and capital

(My balance sheet is clean, neat, with lots of assets and equity)
Accounting Play for the Bay out rapable
(The Bay is the extended San Francisco and Oakland area in California)
Bonds is owned and yours is payable
(I own bonds as assets, making me a lender)
(Your bonds are a liability to your company)
independent now, I ain’t for sale bro

Hook:

Debit cash up, credit down
Other side, now flip around
I got revenue credits, expenses as debits
Debit left, credit right – balance sheet so tight
Debit left, credit right – balance sheet so tight
Debit left, credit right – balance sheet so tight

The Debits & Credits rap is designed to make the debits and credits concept more easily memorable and fun. There is also a dance to go along with the hook. By analyzing the song in the context of T-accounts and tracing through the concepts, you can deepen your understanding in this area. If you have your own version of the song and dance, please post. It is always appreciated.