Enjoyed this video? Then please subscribe to the channel, and let's review debits and credits DC ADE LER in more detail ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-b93KBmcXanI.html and/or learn more about preparing a trial balance ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-SpAwI_SSDHY.html
You're a lifesaver I got an exam a while ago about closing entries I knew nothing then after watching this vid it was pretty basic after all lol i got a 38/40
Wow! Well done! Congratulations. So happy to hear that. Hope you will find more useful information on my channel for future exams, here's the link to the playlist with intermediate accounting videos: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-lBvnSgIGVnU.html
Just want to stop by your most recent video to let you know I’m binge watching most of them 😁 I’m in the middle of Intermediate Accounting 1 and your way of describing things is helping immensely! Thank you for the hard work - best wishes for your channel!
Great to hear that! Happy to help. :-) Please subscribe, and tell your friends and colleagues about the channel! Are there any topics that you think I should cover in upcoming videos?
@@TheFinanceStoryteller I missed your comment before...I’ve moved on to the next accounting class now. It goes over a lot on debt and equity investments, derivatives, taxes, and a ton of other stuff...the subject matter is incredibly broad...
@@dilhack2682 Good to hear from you again! Two videos immediately jump to mind that could help you: financial derivatives explained ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-H_rGN5wOkvY.html and deferred tax assets ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-MvXAljQD4II.html Other than that, try doing a search on RU-vid by typing the topic you are looking for and adding "finance storyteller" to it. For some videos, I even forgot that I ever made them. ;-)
Helpful tip - if you switch the letters around at 1:00 it spells out the acronym DEALER to help remember whats a debit and whats a credit. DEA on left (debits), LER on right (credits)
Glad you think so! Thank you!!! Have you watched the related video on adjusting entries as well? ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-57CST6_RtWk.html
Happy to help! There are many related videos in my playlists on accounting, such as this related video on adjusting entries ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-57CST6_RtWk.html&pp=gAQBiAQB Have a look through it, and watch whatever might be useful to you.
I kindly request clarity on this; you said that we post-closing entries after finishing the financial statements. does this mean that financial statements are prepared without knowing the value of the retained earnings? what should come before the other? is it closing entries, then financial statements? or vice versa. in my thinking, I think closing entries help update the capital account or retained earnings account, which then helps with preparing full financial statements. please kindly elaborate on this.
Thank you so much, Lisa! Very happy to hear that. Please subscribe to the channel, I might have a few more accounting videos that are useful for you, such as the videos in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-b93KBmcXanI.html
Yes, it's an account that is not used in day-to-day accounting entries, it's purely a "technical" account that helps to transition amounts from temporary accounts to retained earnings.
That was AMAZING the way you broke this down was just amazing can't find any other word to describe it, straight to the point, simple, concise. Thank you I just subbed and will be binging all your videos for my accounting for decision making class!
Wonderful to hear that. Please share the link to the video and the channel with your fellow students, and have a look at the following playlists to see if there are any more videos that could help you: Accounting 101 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-b93KBmcXanI.html&pp=gAQBiAQB Intermediate accounting ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-lBvnSgIGVnU.html&pp=gAQBiAQB
Is it safe to expect that most accounting softwares, like Xero and QBO, will do most if not all closing procedures for you? With the exception of adjusting entries
Hi Kyle! Yes, many of those steps have been automated in accounting software. I have no specific experience with Xero and QBO though, so can't tell you specifically what is or is not included.
Yes, that should be an automated run, although I have not specifically used Xero or Quickbooks, so cannot tell you which buttons to press to make it happen.
Please answer this its interesting question....what if the company received its account receivable account....then we will make adjustment on it at the end of the accounting period then A/R become =0....so in those case A/R account hasn't transferred to the next accounting periods...so can we still consider it as permanent account or a temporary one?
Whether an account is a temporary or a permanent one, is decided by its nature rather than its balance. Assets, Liabilities and Equity are permanent accounts. Dividend, Expenses and Revenue are temporary accounts. A/R is an asset account.
Great to hear! Yeah, closing entries are not that hard if you know what you are trying to achieve by recording them. Please spread the word to fellow students! 🙂
Great to hear that! More useful videos in these playlists, have a browse through them: Accounting 101 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-b93KBmcXanI.html&pp=gAQBiAQB Intermediate Accounting ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-lBvnSgIGVnU.html&pp=gAQBiAQB
Glad it was helpful! Please subscribe, and check out my intermediate accounting playlist, there might be more useful videos for you: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-57CST6_RtWk.html
What these closing entries do is to "purge" the data from the current year, and get the accounting system ready to start recording data for the next financial year. Closing entries come in at the very end of the accounting cycle, after you have performed adjusting entries ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-57CST6_RtWk.html etcetera. So study debits and credits, T-accounting, and adjusting entries first, and only then dive into closing entries.
