I am a first year engineer. Our university has this course adminstrated by the Ivey Business Program, which is a top-tier business program world wide. This course is super rigorous and although it states that it does not presume any knowledge of business, the textbook uses information outside the scope of a novice. This course will be helpful tomorrow, while I study for this course.
Another way which help me to remember double entry rules are DEAD (Debit expense, asset, drawing) and CLIC (Credit liability, income, capital) when they are increased, and reverse the debit and credit when they are decreased. ie. Debit liability, income and capital. Credit expense, asset and drawing
I am about to take my exam #1 for an accounting course for college and man you do a way better job explaining the fundamentals then my professor! thank you so much for keeping a consistant and solid pace and disecting each core part of the basics of accounting. You are really boosting my confidence in taking the exam!
I went to RU-vid and searched for the video "Financial Accounting for Beginners" I watched multiple videos and after spending half an hour I found your video and I love it. Your video is really best for me, first I like your video and save it in my playlist then start watching. Thank You for creating this video. Love from Inda💌
Doing Accounting for the first at college level, and having a difficult time grasping what is going on half the time. Praying this video will get me in the groove of things so I can actually start practising. Will give a review tomorrow
I was so glad that I came across your video!!! Being determined to learn as a beginner, I have watched quite a number of videos of accounting tutorials and boy, the more I watched, the more I got confused!😄 But in your video, I really learned very well!!!! Thank you so much!!!!
Thank you for such an informative video .. I will keep watching it again and again to fully master bookkeeping .. sending you my gratitude and best wishes
Sir, I am from Bangladesh. Thank you for giving us this valuable tutorial. We would like to request that you please make a video on how to maintain accounts receivable and accounts Payable.
Hai it would be even helper for students if you could show practical example in excel, tally, or any softwares used in the companies because there would be many student who still require practical example in software like me. Could you please provide that class which would be really helpful for real world work?
0 ثانية At the minute 29:29 you mentioned that the deferred revenue is a non-current liability, this is wrong because it's a short term debt and so it's a current liability because I already received the amount from customer and should provide the service or goods within a short time for sure.
the example in 36:43 about burgers seem to go against the credit/debit rule for income ? seems like both debt and credit were increased as you mentioned asset (recorded under debit) and income (recorded under credit) both increases ?
the asset of cash is increased when the burger is sold. there is a matching principle that states any debit entry must have a credit entry. therefore there is a credit entry, sales(which is classified under income). and yes both assets and income can increase, because they give different outcomes. debit and credit. as long as they give give debit and credit, they can increase.
The video was very helpful for a beginner like me in the accounting but i didn't get the second example of matching principle. can someone explain it to me?
All accounting transactions are summarized into financial statements such as income statement, balance sheet and cash flow. The matching principle of accounting ensures that expenses are recorded in the same period (matched) as the related revenues. For example, if you record sales on Oct 31, and cost of sales on Nov 1st, the income statement for the month of October will reflect sales without any costs, and hence overstate the profit, while the income statement for the month of November will only reflect the costs and understate profit. That's why matching requires that sales and cost of sales for the same transaction are recorded at roughly the same time (or at least the same reporting period).
Hi teacher. I am currently An intermediate student in CPA. i have zero experise job wise, this was really helpfull. So i want to me a remote accountant, give me road map i have to follow or any kind of advice.. am in kenya and my exam body si called KASNEB. IF given good trying i can do a great job😊
Hello Hasan. As explained in the video, dividend income should be reflected under investing activities. In the indirect method of preparing cashflow statement, we start with net income which already includes dividend income. We exclude it to not reflect under operating activities, and then show under investing activities. Just a matter of classification.
Hello. Past events are events or transaction that have already occurred and can include any transactions like sales, purchases, loan agreements, payments, expenses etc
Most accounting systems show debit amounts as a positive number and credit amounts as a negative number. So, if you see a negative number against an account in such systems, this just shows that the balance is net credit. For revenue and income, this is the default position and what you expect to see.
The accounting equation is Assets = Liabilities + Equity. From a financial position perspective, assets are not equal to liabilities. The higher the equity, the lower the liabilities in the balance. Equity represents value of ownership of net assets.
what about an institute that pay cash to the contractor for interior designing ? one is cash and the other is contractor right ? so cash decreases so credit it , but what about contractor and under what ledger does contractor and cash fall in cash book?
If the cash was paid to the contractor after completing the job, debit can be an "expense" in the p&l. The name of the gl account can be interior design expenses. If the interior design is costly (material or large amount) and is part of the building fixtures that the institute owns, this can also be treated as fixed asset or capital expenditure. In that case a fixed asset account such as "building" or "improvements" will be debited. If the cash is paid in advance for work that will be done later, debit will be an asset account such as "advances, deposits and prepayments".
@@LearnAccountingFinance Thankyou ,but i am still confused , can you make a video on this example on the excel please , Also can you do a video on creating cash book on excel on direct and indirect expense , current and fixed assets with examples, where the balance is also recorded.
@@LearnAccountingFinance HOW DO YOU ENTER AN AMOUNT CONTRIBUTED BY A PERSON FOR THE BUSINESS .FOR (EX ) I RECEIVED MONEY FROM MR. X FOR MY BUSINESS WITHOUT ANY RETURNS, ITS LIKE A CAPITAL AMOUNT, SO WHAT 2 ACCOUNTS ARE AFFECTED AND HOW TO POST IN CASH BOOK, WHICH ACCOUNT WILL FALL UNDER DEBIT OR CREDIT ...PLZ DO REPLY
Hello Li Ha. All my content is available on the youtube channel. There is currently an advanced income statement analysis course that you can access at ebitda.thinkific.com/courses/learn. I also provide 1 on 1 training/coaching. You can check details by sending a direct message to @learnaccountingfinance on instagram.
3,850+10,954= 14,804. Only adding expenses at that point. Revenue - cost of sales = gross profit. Then he is doing gross profit - the expenses below = Income before income taxes. It would be much clearer if it was an excel format and had borders for calculations.
The concept of credit and debit is confusing - It seems as if when you pay others money it becomes a credit whereas in real life , having a "credit" card is a good thing as it means you have a line of credit to spend for purchasing of products and services
:) yes it gets confusing when we try to connect debit and credit from accounting to everyday use of the terms. You can view credit line or credit card as an offer by the bank to "increase your liability" ( = credit according to accounting rules). When you make purchases on a credit card you are in effect increasing your liability because you now owe the bank or credit card provider the amount you purchased for. Personally for me, this is the worst kind of credit as it starts growing (with interest) if you do not settle in time. The same goes for credit line.
Remember buddy there is no logic u have to rememver this that there are 5 nature of accounts like assets expense when every they rises we have to debit them and when ever they decreases we have to credit them in journal while capital/equity , income and liability when ever increases we have to credit them and when ever these decreases we have to debit them
