Name: Accounting For Beginners #2 / Basics / Accounting Equation / Accounting Tutorial
Uploaded: 2017-01-13T01:06:44.000Z
Duration: 10 min 42 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Jonathan Dorn CPA, licensed CPA in the state of Florida

this is basic accounting tips part 2 let's get this shit in

if you missed part one go to the homepage CPA Strength and watch that one

first because this one Won't  make as much sense

so anyways now i'm going do to this in all  my, basic accounting tips from now on we're

D   C    Debit / Credit                                     ADE      LER

now i'm a CPA and I still do this, you can do this in the

first day of accounting class DC/ADE/LER Debit/Credit Asset Draw Expense

alright so now every time you do a journal entry

you are going to have at least one Debit and at least one Credit every time you

input something into the books your gonna have at least one Debit at least one

Credit,  you might have 20 Debits a lot of times you'll have 20 or 30 Expenses and

money coming out of the bank over here so you might have twenty-twenty Debits

one Credit and no matter how many different entries you have on each side

always always always always always equals  a lot of accounting

software won't let you leave the page or whatever if the Debits don't equal the

Credits, so that's a that's a steadfast rule take that one to the bank

TELL YOUR MAMA, it's always going to happen so

now you're just gonna have to remember that Debit is always on the left

always always always,  Credit is always on the right,  now

see I i got confused for,  i'll be honest about two years of my accounting career

I was confused because,  I thought Asset is good right ???

right,  so I thought okay Debit  is good but then Revenues is  good money is  good

incoming money's good and so I thought Credit is  good so you know that's totally

the way to think about this is you know neither good or bad just is

these are these are positive sides so if you have if you have a positive asset if

that's a Debit if you have a negative Asset

it's a credit so these are all positive sides

positive positive positive you'll you'll see where that comes in later because

you can have an Asset if there is an asset leaving if there's money leaving

it will be a Credit so anyways so these are positive sides DC/ADE/LER

all right now you might ask what is you know what

where are these??   i'll keep it i'll just try to keep it simple and brief for now

now the most most common most common Asset is

the most common Asset is cash okay but you can also but you also have accounts

receivable,  inventory,  equipment, equipment, buildings

so that's Assets but let's focus on cash cash is the most common in a lot of

entries especially in the beginning you know in the beginning you want to know

what to do with cash i'll help you so those the Assets. a Draw is when, say

this can also be owner's Equity you might see this

owner's Equity but anyways  when the owner cuts the check to

it's a Draw or if it's or if it's a business and it might be a out

it could be a Distribution or Dividend so and it's almost the other side of

BUTION is the Draw.  Expenses uh you know something you spend in the hopes of

making some money for your for your business or whatnot we will  say

you know, and such and such and such telephone,  internet, telly , internet

alright so now these are all positive positive Debits: ADE   DC/ADE

what do you owe somebody wages payable now almost every Liability is a Payable

except unearned Revenue,  so if you see a payable

you're not really going to mess with it too much, it's mostly the retained

you know what is have it at retained earnings

we'll get into that later, but for now just the owner's Equity

you know the owner's Equity, the equity, what you have in the business and

so that's, you make a sale you, do service

you guys love my handwriting, that's a lefty strength, I think it's August

Thirteenth today, it's lefty  day, so any of you lefty's out there

I suck, anyways,  so let's get back to this so that's DC/ADE/LER

so you know kind of what they are all now we're going to do some journal

I just want you to know watching this one that,  Expenses and Revenue

that's the Income Statement here this is what's on the Income Statement

now when, when  you file your taxes at the end of the year

you pretty much going to give your CPA your Income Statement and you're going

to give them the Balance Sheet on the Balance Sheets the biggest the biggest

you might have heard of it a lot you know Balance Sheet carries over you from

year to year and the Balance Sheet is the Basic Accounting Equation which is

Assets = Liabilities + Equity  and what we'll go over that of

course later it's going to show you that the DC/ADE/LER

it just works because you have your Income Statement right here and then you

also have your Balance Sheet see Assets equals  Liabilities plus Equity so

there's your Balance Sheet and that the Draw is basically the other side of that

what are you so it can kind of be included in there anyways that's that's

Subtitles ListPlay Video

Accounting For Beginners #2 / Basics / Accounting Equation / Accounting Tutorial

struggle

bunch

positive

mess