What do you mean, “debit is not bad”?

Debit is bad, credit is good! That is what I know, that is what I have always been told.

What do you mean, “debit is not bad and credit is not good”? What do you mean principles? What principles? How can principles change debit to good and credit to bad?

My first encounter with accounting bookkeeping was wild, to say the least. My head was spinning. I couldn’t comprehend anything. To make matters worse, I was studying on my own, for a certification examination and the clock would not just stop racing. I had just completed my first degree and was in the National Youth Service Corps. I had decided to start the process to become a member of the Chartered Institute of Taxation of Nigeria. Worst of all, I thought, “it can’t be that hard. What is likely to be new?” If only I knew.

I studied Financial Management in my first degree. When many people hear that, they immediately say, “oh you are an accountant!”. No, actually I am not, and I found out this truth in a harsh way. Accounting and finance are actually two very distinct, albeit related subjects. Finance assumes the accounting has already been done. But the accounting doesn’t just get ‘done’, someone does it. At the time, I was not in the least knowledgeable enough to be the ‘someone’.

These memories all came rushing back in our Corporate Financial Accounting course. Typically, I make sure to read every course material, even for topics I am very familiar with. This one I had to read it twice, to be sure that I remember. When something is that important, you have to be doubly sure.

And then in class, when Professor Owolabi said, “everyone should pay attention for this next part. Forget everything you knew about this and pay attention to what I am about to tell you”, I understood what he meant. I had to concentrate… I will not miss any opportunity to relearn this concept.

The familiar grumbles were audible after the Professor explained. I could tell what was going through the minds of my esteemed colleagues. Folks I am sure have faced more difficult problems. Some have tackled the knottiest legal cases, whilst some others have solved some of the most challenging engineering problems. I could see the bewilderment. Sometimes, I even have to repeat it in my mind to be sure I still had it right. I have lived this moment before.

“Oh, I know how you feel, I have been there!” I have felt the cold sweat and the feeling of nothingness. I have wondered how I had studied Math Method, differentiation, integration, matrix and all manner of complex mathematics, but unable to grasp a concept that basically explained ‘debit to the left, credit to the right’. I have been there, trust me. Only when I was there, I did not have Professor Owolabi to guide me. I was on my own and I failed miserably.