DEADCLIC vs. DEA‑LER: Simple Mnemonics for Debits & Credits

Author: Lam Nguyen, CentsIQ
Publish date: October 30, 2025
Estimated read time: 5–7 minutes

TL;DR

Two widely taught memory aids for debits and credits are DEADCLIC and DEA‑LER. They map to the same effects:

• DEAD → Debit increases Expenses, Assets, Drawings
• CLIC → Credit increases Liabilities, Income, Capital (Equity)
• DEA‑LER → Dividends, Expenses, Assets (debit increases) — Liabilities, Equity, Revenue (credit increases)

These mnemonics are commonly taught in introductory accounting courses and lead to the same bookkeeping results.

 

What “debit” and “credit” mean in accounting

In double‑entry bookkeeping, every transaction affects at least two accounts and total debits must equal total credits. “Debit” and “credit” are positions (left/right) in the ledger; whether a debit increases or decreases an account depends on the type of account.

Debit/Credit effect by account type

Account Type	Debit (Dr)	Credit (Cr)
Asset	Increase	Decrease
Liability	Decrease	Increase
Equity / Capital	Decrease	Increase
Revenue / Income	Decrease	Increase
Expense	Increase	Decrease
Dividends / Drawings	Increase	Decrease

Quick check: Assets + Expenses + Dividends tend to have debit balances; Liabilities + Equity + Revenue tend to have credit balances.

The mnemonics

DEADCLIC (two words: DEAD + CLIC)

• DEAD → Debit increases Expenses, Assets, Drawings
• CLIC → Credit increases Liabilities, Income, Capital

This version explicitly calls out Drawings (owner withdrawals) and Capital (owner’s equity).

DEA‑LER (split as DEA | LER)

• DEA → Dividends, Expenses, Assets (debit increases)
• LER → Liabilities, Equity, Revenue (credit increases)

This version uses Dividends instead of Drawings (common in corporations) and Equity instead of Capital.

Both mnemonics encode the same rules. Choose the one that matches your entity type and sticks in your memory.

Two quick examples

Example 1: Buy $500 of supplies for cash

• Supplies (Asset) — Debit $500 (asset increases)
• Cash (Asset) — Credit $500 (asset decreases)

Journal entry:

Example 2: Earn $1,200 service revenue on account

• Accounts Receivable (Asset) — Debit $1,200 (asset increases)
• Service Revenue (Revenue) — Credit $1,200 (revenue increases)

Journal entry:

After posting all transactions, the sum of all debits equals the sum of all credits.

FAQ

Are debits “good” and credits “bad”?
Neither. They are directional entries. Whether a debit/credit is “good” depends on the account type and context.

Do debits always increase?
No. Debits increase Assets/Expenses/Dividends (Drawings) but decrease Liabilities/Equity/Revenue.

Is “Income” the same as “Revenue”?
Most intro texts use them interchangeably. Some standards use “Revenue” and reserve “Income” for subtotals (e.g., Net Income).

Drawings vs. Dividends?
Sole proprietors/partnerships: Drawings. Corporations: Dividends.

Why this matters

Learning either mnemonic accelerates journal entry accuracy, reduces posting errors, and improves reconciliation speed—especially for small businesses and new staff.