The document explains how to understand debits and credits in bookkeeping. It defines debits and credits as entries on the left or right side of accounts. Debits increase asset and expense accounts, and credits increase liability, equity, and revenue accounts. The steps are to understand debits and credits, remember basic rules like assets increasing with debits, set up a basic balance sheet and ledger accounts, record transactions by increasing and decreasing appropriate accounts with debits and credits, update account balances, and ensure the books are balanced.