DEAD CLIC in Accounting

Double entry bookkeeping is the foundation of all accurate accounting. It’s what keeps a business’s financial records in balance — and the system every accountant relies on. For learners and professionals alike, the acronym DEAD CLIC is a simple way to remember how double entry works in practice.

Here’s a breakdown of what DEAD CLIC means, how it applies to real transactions, and why mastering it is essential for anyone involved in finance.

What Is Double Entry in Accounting?

Double entry is a system of bookkeeping where every transaction affects at least two accounts — with one debit entry and one credit entry. The idea is that for every value received, there is a value given. The two sides must always balance.

For example, if you buy a laptop for your business using cash:

• The equipment (asset) account increases — that’s a debit

• The cash (asset) account decreases — that’s a credit

The transaction is recorded twice to reflect the full picture.

Why Is Double Entry Important?

Double entry is important because it:

• Ensures accuracy by balancing every transaction

• Prevents fraud and errors by requiring matching entries

• Creates the basis for full financial statements

• Allows accountants to spot discrepancies quickly

• Helps track what the business owns, owes, earns and spends

Without double entry, the accounts would become incomplete, unreliable, and potentially misleading.

What Does DEAD CLIC Stand For?

DEAD CLIC is a memory aid that helps you remember what types of accounts are debited and credited in double entry.

Here’s the breakdown:                

DEAD

• Debit

• Expense

• Asset

• Drawing

These types of accounts are increased by debits.

CLIC

• Credit

• Liability

• Income

• Capital

These types of accounts are increased by credits.

Examples of DEAD CLIC in Action

Example 1: Buying Office Supplies for Cash (£200)

• Office Supplies (Expense) → Debit £200

• Cash (Asset) → Credit £200

Expenses go up on the debit side. Cash (an asset) goes down, so it’s credited.

Example 2: Customer Pays You for a Service (£500)

• Cash (Asset) → Debit £500

• Income (Sales Revenue) → Credit £500

Cash goes up (debit), and so does income (credit).

Example 3: Taking Out a Business Loan (£5,000)

• Bank (Asset) → Debit £5,000

• Loan Payable (Liability) → Credit £5,000

You gain an asset (cash in the bank), but you now owe money — a liability.

Why Accountants Use DEAD CLIC

DEAD CLIC is widely taught in UK accounting courses and apprenticeships because it provides a practical way to remember what can be a confusing concept. It’s especially useful for anyone new to bookkeeping or sitting exams.

It helps you quickly determine:

• What side of the ledger an account increases on

• Whether a transaction should be a debit or a credit

• How to keep the books in balance without guesswork

Even experienced accountants fall back on this logic when reviewing entries or training new staff.

Final Thoughts

Double entry is the backbone of all professional accounting, and DEAD CLIC is a handy tool to make it easier to apply. By understanding how different account types behave — and knowing which side of the ledger to record them — you can produce clean, balanced and accurate books.

If you’re new to accounting, get comfortable with DEAD CLIC early. If you’re already working in finance, it’s a quick way to teach, check or reinforce your understanding.