Accounting for Beginners #5/ The Balance Sheet / Basic Tutorial

• Accounting for Beginne... BEST ACCOUNTING PLAYLIST ON KZbin !!!!!!!! I go over the Balance Sheet, in this Basic Accounting Tutorial for Beginners. The easiest way to keeps debits and credits, and Assets = Liabilities + Equity ( Accounting Equation) straight. This is how i passed the CPA Exam to become a licensed CPA in the State of Florida. You can use the information in the video on your first day of Accounting class all the way tho being a CPA. Debits, Credits, Assets, Draw, Expenses, Liabilities, Equity, Revenue. This video has a very basic example and can be used in the most advanced situations. Learn Debits and Credits and the basic accounting equation which is assets = liabilities + equity. This will also help with the income statement which is Revenues - Expenses. I hope you enjoy the video. In this video i go over journal entries. Get your tips here in this accounting for beginners video. There is also information on the balance sheet here in this video. I also go over Accounts Receivable, Accounts Payable, Depreciation, Accumulated Depreciation, Putting Assets on the books, Fifo and Lifo Inventory Valuation, and so much more in this series for beginners.
Accounting For Beginners #1 • Accounting for Beginne... Debits and Credits / Assets = Liabilities + Equity
Accounting For Beginners #2 • Accounting For Beginne... Basics / Accounting Equation
Accounting For Beginners #3 • Accounting for Beginne... Journal Entries / Beginner Tips
Accounting For Beginners #4 • Accounting for Beginne... Income Statement / Revenue - Expenses
Accounting For Beginners #5 • Accounting for Beginn... The Balance Sheet / Basic Tutorial
Accounting For Beginners #6 • Accounting for beginne... Putting an Asset on the Balance Sheet
Accounting For Beginners #7 • Accounting for beginne... Depreciating an Asset / Basics
Accounting For Beginners #8 • Accounting for beginne... Depreciation Expense / Basics
Accounting For Beginners #9 • Accounting for beginne... Accounts Receivable / Basics
Accounting For Beginners #10 • Accounting for Beginne... Accounts Payable / Basics
Accounting For Beginners #11 • Accounting For Beginne... Fifo and Lifo Inventory / Basics
Accounting For Beginners #12 • Accounting For Beginne... 1 Journal Entry With 2 Assets / Basics
Accounting For Beginners #13 • Accounting for Beginne... Accounting Study Guide / Template
Accounting For Beginners #14 • Accounting for Beginne... Journal Entry with Cash / Expense
Accounting For Beginners #15 • Accounting For Beginne... Journal Entry With Cash / Revenue
Accounting For Beginners #16 • Accounting For Beginne... Debits & Credits / Negative Asset
Accounting For Beginners #17 • Accounting For Beginne... T-Accounts / Debits and Credits / Accounting 101
Accounting For Beginners #18 • Accounting For Beginne... What is a Draw? / Withdraw / Distribution / Dividend / Equity
Accounting for Beginners #19 • Accounting for Beginne... Don't Abbreviate / Accounting 101 / Basics
Accounting For Beginners #20 • Accounting For Beginne... Chart of Accounts / Assets, Liabilities, Equity, Revenues, Expenses
Accounting For Beginners #21 • Accounting For Beginne... T Account Example / Accounting Tutorial
Accounting For Beginners #22 • Accounting For Beginne... Trial Balance Unadjusted / Accounting Basics
Accounting For Beginners #23 • Accounting For Beginne... Cash in a Bank Account / Checking Account / Basic Accounting
Accounting For Beginners #24 • Accounting For Beginne... Does The Transaction Increase Assets / Accounting Basics
Accounting for Beginners #25 • Accounting for Beginne... Accounts Receivable Example / Accounting 101 / Accounting Basics
Accounting For Beginners #26 • Accounting For Beginne... Reducing Accounts Receivable / We got Paid / Accounting basics
#Accounting #Exercise #CPA
#Accounting #Exercise #CPA

[@melissaholz5570]

This video is 8 years old and I am about to start school for accounting. I have been reading books to prepare myself but this guy has been very helpful in understanding this books I'm reading. For anyone starting out, these videos are not a waste of time. Thank you for your time in making these videos

[@CPAStrengthPassion]

Thank you so much

[@briannafowler313]

These videos are two years old and are still helping accountant majors. Thank you so much!

[@CPAStrengthPassion]

You are welcome, the thing with accounting, is that the basics will not change, they have been the same for 500 years

[@pratikraj7475]

It's 2020

[@alexmagallanes6338]

5 years

[@samueledistefano2291]

it's 2022

[@kevinagt777]

It's 2022 and I'm not even majoring in accountancy, I'm an engineer who just wanted to get literate in finance and this guy's video has helped me a lot understanding

[@Ruusujuuri]

Just took an accounting course at my university and gotta admit that you man, are simply very much superior at teaching these things than our Ph.D's. Big help, thanks!

[@CPAStrengthPassion]

Thank you for your kind words. I can't wait until after tax season, and i have the time to make more basic accounting videos.

[@sassysaysso695]

Agreed

[@CPAStrengthPassion]

Thanks sassy

[@hansanitharaka]

who said u're not a teacher...now u are...so lucky to find u before my exams....really thankfull to u mister

[@CPAStrengthPassion]

Yeah, i guess i am a teacher

[@gwenduncan8116]

A good teacher is one who change lives. When you read the comment section do you not see how many lives you have changed? I had a very boring acctg. professor where i dreaded going to class. You are compassion and funny and straight to the point. You can teach accounting with ease. You bring accounting to life.. Thank you!

[@CPAStrengthPassion]

You are so nice and thoughtful. I thought so lowley of myself for so long, i don't know i can't explain how i didn't see in my comments how many people i help. and that my purpose was in front of me all the time.

[@itsjustyana6323]

@@CPAStrengthPassion it is in front of you since the day you posted that first accounting video! keep up

[@CPAStrengthPassion]

Thank you. You are so correct

[@gelamegeneishvili130]

-dad why is my sister named beyonce -because your mom loves beyonce -and how about my name -okey DC ADE LER time to sleep

[@CPAStrengthPassion]

Haha - that is hilarious

[@balbirbharol6994]

Gela Megeneishvili

[@gelamegeneishvili130]

thanks mate, your lessons were great help

[@cozynblue]

WoW. It took me about a half hour to get this joke. LMFAO. I even looked up your name trying to get the joke. Good one dude.

[@jerlenecampbell6789]

I wish I had your help s few years ago

[@FAIRxENOUGH]

I am now dreaming of DC ADE LER , Thank you x

[@CPAStrengthPassion]

+Anna P I'm not sure if that's a good or bad thing. 😀

[@FAIRxENOUGH]

Well hopefully not for too long ;)

[@sharaswatimurti2525]

When you see something beautiful forming while trying to study accounting.

[@IONS-LEGACY]

DEAD CLIC

[@523williammonsalve]

hahahahahaha!!!

[@crisselxo]

I love how straightforward you are with your videos. I'm about a month into my Financial Accounting class, and I think I learned more from your videos than I did in the whole month of being in my professor's class. I kinda wish you were my professor instead! I really hope you keep making videos, especially with other topics of Accounting such as Managerial Accounting, etc. Seriously, keep it up! :)

[@CPAStrengthPassion]

Thank you for your nice comment. Makes my day !!! I will 100% be making more accounting videos.

[@crisselxo]

That's great! I'm glad!

[@nadoosh2139]

I don't get it... how did u get 10,200 from where I mean how did u calculate?

[@SharifulIslam-fp4yk]

why you added net uncome with liability or equity?

[@sheepnoisebah]

he got 10,200 assets from the cash (debit the left side cash, credit the right side cash) + truck. in number: 10,000 - 5,000 - 500 + 800 - 100 = 5, 200 (cash) + 5,000 (truck) = 10, 200 total assets. now for the liabilities + equity side of the accounting equation. 10,000 (LIABILITY) - 100 (DRAW, which is also just a debit equity or negative equity) + 300 (REVENUE, or net income shown in the previous video 800 (revenue) - 500 (expense) = 300 (net income)) if you didn't do the net income before hand, you could have just added expense to total assets, and revenue to the liabilities + equity side of the equation. 10,200 + 500 on the ADE side and 9,900 + 800 on the LER side.

[@SurferLife21]

I am halfway through my semester of accounting and you have already taught me so much more than the class! Thanks so much for these videos! 6 years later and i'm using your videos!

[@CPAStrengthPassion]

Awesome 😎 glad I could help out

[@RobertH-fo5do]

You could call it DADE CLER. Just a thought. Also it's cool you're not a teacher, you don't get any of the teacher ramblings and I get a lecture all the time. This is perfect; just a clear clarification and consolidation of what I've already learned. Thanks a lot for these. I've poured over notes and the book studying my ass off for my final today and I came to youtube looking for anything to do exactly what you are doing, speaking in a clear, understandable perspective from a regular person, not a teacher which is just what some people need to understand something. Thanks for your time keep it up!

[@CPAStrengthPassion]

+Robert Harrison thank you. You are totally correct in that you could change to DADE CLER. However you can remember what they stand for and where they go is what it's all about. For some reason DC ADE LER just ticks in my head

[@paullouisdamasing9865]

I'm only 17 and have a dream to become CPA. Glad I stumbled upon these videos, and I think these will give me a massive head start if I go into my accounting classes lol. Thanks a ton. DC ADE LER gang!

[@CPAStrengthPassion]

Oh yes, you will have a massive head start if you start your classes already knowing DC ADE LER all the best

[@jayaonaaronvincentsp.6269]

This video was uploaded 4 years ago. And yet it still helps a ton of people. I just watched this video and the other 4 videos. This really helped, like A LOT. Its been about 18 hours since ive watched from the first video now. And guess what, i understand it a lot more better than a semester of accounting class. Thanks a lot for your content! You were a HUGE help and a life saver!

[@CPAStrengthPassion]

Thats whats up. Happy to help

[@bossladybee8323]

Yes. Agreed. The Dc ADE LER BOARD IS GENIUS

[@benjigangwer7258]

I am currently in accounting 101. My professor and I have went over the material from your videos, and until I watched your videos I was lost. You have made things so clear and simple. Thank you very much. DC ADE LER is my friend.

[@CPAStrengthPassion]

That makes me super hapy that could help you out with learning accounting

[@caitlynbedner2641]

Nobody: CPA Strength: CAYSH

[@CPAStrengthPassion]

Haha

[@vecna2821]

I laughed hard

[@dnttrip9827]

5200 CAYSH 🤣

[@betsylee1235]

You are helping this Momma get out of her stressful manager position at a financial institution to be able to work from home and be her own manager and be home with her kids! I spend so much time developing others that I am missing out on being able to develop my own children in the way I want to. I can’t thank you enough. I just wasn’t getting it before and now it’s all clicking and making sense. Excited for my new journey again! Thank you 🤗

[@MBrown-rp1sk]

I am taking a corporate accounting course and I love your teaching style. I will be using your ADE and LER method. You Rock!

[@CPAStrengthPassion]

Thank you. Glad you are enjoying

[@MsWittyReadz]

I just realized the equation for Assets (A=L+E) can be remembered by thinking of the word "ALE". After an accounting exam who wouldn't want a good ale (or Ginger ale) for non drinkers. Lol

[@andrewoconnell359]

@Bianca Abi Because it has to equal the assets (A=L+E), and with the cash and truck, there is 10,200 in assets. 10000+(-100)+300=10,200

[@EvolutionAutocrosser]

If I understand correctly, the 300 profit or net income becomes part of the equity.

[@deaaandreea9164]

Basically what is the 'profit' in a company goes to the owners (equity). 😉 The company profit was 300 but they already took 100dolars previously (drawn from atm)

[@TravelPhotoWriter]

Ms. Witty is named very appropriately!! 😍

[@thomashorne860]

Hey man I appreciate your videos. I’ve been working in accounting for 7 years….. 30 years old and going back to school to meet educational requirements and just bought a cpa exam review course. I can relate to your past and what you chose to make of yourself. Thanks for the motivation brotha.

[@CPAStrengthPassion]

Thanks for commenting, and letting me know that I have to get back to making videos to share my story and inspire and motivate. / I want to be the shining star 🌟 that you can look at and say “he did it, so can I” / you only fail if you quit. Keep going !!! Best of luck to you.

[@susanerickson6408]

I am beyond beyond! FINALLY an accountant that doesn't speed-talk on KZbin. You rock abundantly!! I have learned more in your first few videos than I have in 3 (count them 3) college accounting courses. A gazillion thank you's to you my friend. - Oh, and DC ADE LER is brilliant.

[@CPAStrengthPassion]

+Citizen at large I appreciate your kind words.

[@charmainebarsalote9312]

I stopped studying for three years and now that im back im really a total alien. Thanks for explaining it properly and briefly sir 😊

[@mugensamurai]

You may not be a university teacher but you are the people's teacher.

[@CPAStrengthPassion]

I agree with that

[@raniaalhakimi8080]

This is my second week in accounting class I wasn’t have any idea about any thing until I watch your video 👍🏻 thank you so much

[@CPAStrengthPassion]

You are welcome. I am glad to help.

[@gagemorgan1586]

I'm rather slow in the processing speed department. Your videos are actually perfect dude. You've granted me a fundamental understanding of this stuff, and that's a valuable tool going forward. Thank you man.

[@susanasher6939]

Quit saying you don't think you're not a good teacher. You're a GREAT teacher! GREAT! Please teach us more.

[@CPAStrengthPassion]

Thank you

[@michaelmason2128]

I took Accounting 1 years ago. I'm starting a E-commerce business and trying to get the books in order. Great info. Im using QuickBooks but need to still remember the basic accounting principals.

[@CPAStrengthPassion]

I’m glad I can help yes just cause you have quickbooks doesn’t mean you know how to use it.

[@jaderakraus929]

@@CPAStrengthPassion this is where I am at with quickbooks right now lmao these videos are helping though!!

[@anjaylah]

I have learned more in your 5 short videos from you then I have from studying on my own, in university, on the job and from my mentors. You made it all snap into place. Wish I could repay you for teaching me the most important part of accounting myself as well as other have been missing. THANK YOU.

[@CPAStrengthPassion]

Thank you 😊 / letting someone else know about my channel is repayment enough. Also getting a comment like yours fills my soul up like nothing else ever could. Have a great day 😎😎😎

[@bossladybee8323]

2022 y’all. Taking an accounting course and this is one of the best videos for cpa teachings on u tube. All the beginners videos are genius!! Thanks 🙏 man. U the best!!

[@CPAStrengthPassion]

Good luck to you on your course. I know you will do great since you have the framework of DC ADE LER at your disposal

[@jamniraq]

at 2020! thank you for sharing your tips & knowledge. You keep on saying you are not a teacher....but for me, you are a good one. You executed well all the basic in accounting. I can easily understand everything. CPA Strength, I watched other videos for accounting, but yours are the best one, I never did continue watching their videos. God bless you.

[@Zilole111]

Just stumbled on this. Just what I needed to keep my accounting books in order for my small business since I can't afford to employ an accountant or bookkeeper! Thank you!!!

[@CPAStrengthPassion]

You got this!

[@ahmedj.5311]

why was the net income brought into the equity? I hope someone is watching from 2020

[@CPAStrengthPassion]

Commenting from 2025 - net income or loss always flows into equity

[@ahmedj.5311]

@@CPAStrengthPassion thanks a lot man, started watching your videos to prepare me for my accounting course

[@lucifher]

I am currently watching all his accounting videos in 2020 lol

[@seulgiii.5346]

@@lucifher same im kinda advancing since the form of learning has been online

[@frankenstein9626]

@@CPAStrengthPassion Im watching all your videos again for the 3rd time

[@BlessedWife2009]

This is so helpful. I started accounting 101 on Monday of this week and I was so confused. It is starting to sink in after watching your videos!

[@CPAStrengthPassion]

+BlessedWife2009 Whitley that's awesome. I'm glad you found my videos. You will do fine practicing with DC ADE LER

[@breannaashleypacheo8031]

Started subscribing: Nov. 1, 2020 5 - 6 years from now, I'll come back here when I finally got my CPA license.

[@roseannsullano1891]

I will be taking criminology course this coming school year but because of this I think I want to pursue accountancy. Thankyou so much !!! YOU ARE LEGEND😊

[@CPAStrengthPassion]

Glad you are enjoying the videos

[@paulgonzalezgolf]

It's 2021 now and these videos from 2015 are still holding up to the test of my accounting exams today! thank you for your help my man!!!

[@CPAStrengthPassion]

The fundamentals of accounting have been the same for line 500 years. Glad my videos are still being helpful

[@rvvr7644]

Seriously, you don't give yourself enough credit. You're a good teacher & you're humble. Thank you. I used to be an accounting major at a very prestigious school, and you taking your time and moving slow has actually allowed me to process and absorb things better in the little chunks of videos that you've made. It's perfect and GENIUS! How do you eat an elephant? ONE BITE AT A TIME. =) We were literally belittled by our professors for asking questions & not understanding. It was so discouraging that I changed my major half way through the program because I became unhappy when I actually love numbers and am good at math. I wish I had someone like you around to help us get it. I would probably be a CPA today if it wasn't for that experience. WORD OF ADVICE TO PEOPLE: "GO TO A SMALLER SCHOOL IF YOU CAN. WITH MY EXPERIENCE, PRESTIGIOUS SCHOOLS CAN BE OVER-RATED. SAVE YOUR MONEY AND PEACE OF MIND. THEY HAVE TOO MANY STUDENTS AND CAN'T REALLY FOCUS ON YOU. SO GO SOMEWHERE WHERE YOU CAN HAVE MORE ONE-ON-ONE WITH YOUR PROFESSORS, JUST DO YOUR RESEARCH BEFORE YOU SIGN UP FOR ANY SCHOOL OR PROGRAM. "Remember, your clients don't care what school you went to. They just care that you KNOW what you're doing and are going to take good care of their money and will be honest every step of the way." Great refresher, this guy IS teaching you accounting! God Bless you and thank you because you simplified it better than anyone I've known. CLARITY IS SUCH A BLESSING & SO ARE YOU! =)

[@Linkay89]

You are a better teacher than you give yourself credit for. I have just started learning about accounting, never thought I would ever get it. You have helped me get it, I am shocked at how easy it is to learn because of you. I actually have a chance to understand and pass my course. Thank you very much for making time to help us. God bless you.

[@synaleefaithgano56]

Freshmen here!! Classes are coming up and im very happy that i've seen your videos.. It broadens my knowledge.. thank youu soo muchh!!😊😊

[@ayie7113]

(4:30) CASH ! hahahhaa ! I like your style, thanks ! you explained it, better than my teacher!

[@suliarizadila9723]

hahaha

[@mohamedelhag7778]

Haha Rocks!

[@user-xb9nz8qp2o]

Its my first time in accounting and i have been struggling i even fail a test,but this information is a game changer even after 8 years.thank you🙏👌

[@TigerTearz]

No questions yet. I just want to let you know that you make this so increadibly easy to understand! I use your videos as a complement to the classes I take. Our teacher is confusing the life out of me and I was just about to give up on the subject all together when I came across your videos. A friend of mine managed to help me correctly translate DC ADE LER to Swedish and after that I've learned and learned thanks to you! Thank you for taking time to make these videos!

[@vitoamos2815]

as a student, I have a text book that believes you can read the authors mind on accounting equations. The, you already know attitude.

[@vitoamos2815]

So, Thank you ,CPA

[@CPAStrengthPassion]

Your Welcome, i try to break it down very simply.

[@davonmusgrave6685]

It's 2022, I never got accounting but my new job casually mentioned that I basically gotta do this stuff(or at least they assumed I already know how to). Needless to say, discovering your lessons made me well equipped. Might even name my kid DC-ADELER lol probably not.

[@CPAStrengthPassion]

Yeah probably skip on the name thing. 😂🤣😂 glad I could come through in the clutch

[@ziyaadcruywagen7132]

Ive been struggling with accounting for years and DC ADE LER just changed my life! Thanks so much for this video!

[@alexjaime390]

I just wanna say these videos made me realize on what to become. I was studying for engineering for a while though I just didn't seem to understand the basics of it. It was a rough start for me in college. I figured this was the end for me because of how poorly my tests were going and quizzes. Now with accounting its very different though very easy to understand money. I just wanna say thank you to this guy!

[@CPAStrengthPassion]

Your welcome. Thanks for letting me I am making a difference. I was similar boat because I didn’t understand calculus. But accounting and money just makes more sense.

[@ivonamihaescu3058]

Thank you so much for your videos! I was struggling to understand the difference between debits and credit, but it all makes sense now! You're amazing!

[@audioweb]

Thank you sooooo much! Of course you are a very good teacher! :D

[@CPAStrengthPassion]

+Pati Muniz Your Welcome, being a good teacher i'm sure is debatable. If you found this helpful, then that's awesome

[@balbirbharol6994]

Pati Muniz c x Xbox, cab biz Z, X

[@Harry-tx8bi]

3 and a half years on and these videos still help me so much, honestly dont think I could finish my degree without these videos

[@CPAStrengthPassion]

That’s so nice of you to say. I’m so glad I can help

[@KEN_DEN]

DC ADE LER! The only accounting language you need! You sir, just saved my accounting career ! I owe you a great deal of gratitude!!!!

[@CPAStrengthPassion]

I’m grateful I have people that watch these videos

[@AbdulRahman-lv6sy]

Hey struggled a lot with these equations and logics of posting the entries. This cannot be better than this thanks.

[@CPAStrengthPassion]

Super glad I could help out

[@14brentwood]

Haha dude youre hillarious and this shit was really helpful! leggo

[@hobissprite928]

When you added up the cash to $5,200 it all finally clicked for me. I watched other KZbin videos, read my book, watched my professors notes, and still couldn't figure out debits and credits. I was getting unbelievably stressed that I couldn't figure it out and now I feel so relieved. Thank you!!

[@lydiabowling838]

Im taking an online intermediate accounting class after being out of school for 4 years to spend time with my daughter. These videos just saved my life... no joke

[@CPAStrengthPassion]

I’m so glad you have found my videos useful.

[@asmi2023]

Wowwww you explain really well.I used to find accountancy very hard but after watching your videos I find it so easy.Thank you so much for explaining it in short.

[@CPAStrengthPassion]

+Asmi Kadira glad you got something from the video, it just seemed to click all at once for me.

[@wanda986]

I think I am going to finally pass my exam.

[@CPAStrengthPassion]

You got this, you are going to crush the exam

[@Ct_Mieza]

I cry just now. I'm really happy to watch this video!. I have nothing basic in accountancy. I'm from science class from secondary school.. Now I continue my study as accountancy's student. Thank you so much. May God bless you.

[@CPAStrengthPassion]

+Ct Mieza thank you very much

[@meganmalicki9857]

You are a good teacher! I have learned more from you than my professor who talks really fast and doesnt explain things through. Ty so much for these videos!

[@CPAStrengthPassion]

You’re so welcome. Everyone says I talk to slow, but some people do like the slower pace. Good luck in your class

[@MonsteRv408]

the extra motivation at the end of the video is what we need man thank you!!! "never give up"

[@CPAStrengthPassion]

Glad you liked it. Never give up

[@queeniemarierimpos887]

2019 still I LOVE DC ADE LER thing, really helped me alot. ❤

[@CPAStrengthPassion]

We have had the same accounting system forever. DC ADE LER will work for hundreds of years to the future.

[@queeniemarierimpos887]

Thank you so much

[@nqababarnes4340]

I never did account in school, now am preparing myself bcz I want 2do a degree in accounting, I have been watching other videos for close 2 an hour they are no match 2thise videos u did man am confident that am goner do well in accounting thank u,

[@adamjoreeyj5652]

YEP! this vedios was 8 years ago but i studied today many things about acountings thank you so much mr: CPA STRENGTH

[@CPAStrengthPassion]

The classics stay around. This is good information for a long time coming

[@tonyajohns6165]

You are a great teacher.I

[@GiaNguyen-sl4zb]

I just want to say thank you so much for the videos, it helps made things so much easier to understand . Pleas make more videos in the future for intermediate accounting.

[@CPAStrengthPassion]

Your welcome, and yes i'll be making more Accounting videos tackling different subjects

[@joshthehustler8205]

Low key now starting accounting and this makes it so more easy

[@rannsackmxemmynoh1312]

I passed through all the tutorials and trust me,, I feel competent now🎉😮

[@CPAStrengthPassion]

That’s amazing. All the best to you

[@resonatelove4613]

great videos, thank you. I guess the only place where u lost me was when u did the $100 draw as a negative equity when it's in the debit side. maybe missed something :(

[@lindafukuyu5767]

I think I know the answer because the $ 100 cash draw is also the same with the Draw account distribution on the other side (Debit) and it's a negative equity since you withdrew the cash out of ATM. I hope this is helpful and also correct me if I'm wrong. And, with the NI (Net Income) of $ 300, it will balance them all evenly.

[@sheepnoisebah]

because from the point of view of the company, drawing $100 means you take out 100 from the assets of the company. the accounting equation says assets = liabilities + equity or assets - liabilities = equity. you now have assets (100 credit) = liabilities (none) + equity (?) equity means equal, and for assets and liabilities to be equal you need 100 debit in equity because we know the company doesn't owe you anything for giving you money, so 0 liabilities. assets (100 credit) = equity (100 debit) is kind of the same as -100 assets = -100 equity, it's balanced. DRAW in DC ADE LER is negative equity in other words, that's why it's on the opposite side of EQUITY. just like expense is on the other side of revenue.

[@dancinginthebasement]

@@sheepnoisebah , you are a blessing. Thank you so much!

[@chengreyes1876]

can I ask where did he get that $ 5,200 cash :( im lost

[@chengreyes1876]

and why the cash in the truck is included while he included already in the $5,200 cash I hope you get my point thankyou for helping :)

[@saydelrosario5455]

Thank you for sharing your knowledge about accounting.

[@CPAStrengthPassion]

You are welcome. I love being helpful

[@tlharris35]

You are helping me out a lot I have taken my Accounting class twice and then a friend told me about you and I have been watching you and you have made Accounting fun and now I have a better understanding. Thank You so Much.

[@CPAStrengthPassion]

Hey that's awesome. I like your friend !!! I'm always glad when i can entertain & educate.

[@jeffreykorus6817]

Nah man. Youre a good teacher. All these vids and yours is the one I understand best. You explained it in a way I can grasp the information. I dont know how else to put it.

[@JDPetreeMusic]

DC ADE LER. Need I say more? You're a fucking legend mate, thank you

[@CPAStrengthPassion]

No those 8 letters is all you need

[@audacitywill4745]

Man.... i feel so much better now.... 😂😂😂 why cant my teacher do this😂😂😂

[@CPAStrengthPassion]

+Aleshia Williams I got you 😉 I'll be your online teacher 👨‍🏫

[@kimberlyvincent6050]

In an accounting course right now...week 4...totally lost until I saw your videos. Thank you so much!

[@CPAStrengthPassion]

Now your going to crush your class with DC ADE LER

[@kimberlyvincent6050]

@@CPAStrengthPassion hell yeah!

[@miss00caro]

You saved me! Got 100% on my quiz. Will keep watching all of your lessons. I now have high hopes for legal accounting! Thanks!✌️

[@CPAStrengthPassion]

A freaking 100% you crushed that. You def have a handle on the material.

[@omslil4167]

Sir I can't thank you enough for this wonderful lessons. well I'm a beginner to this Channel, but the confusion point is. in THE BALANCE SHEET entries how did you get 4,500 instead of 5,500

[@taliahall6577]

because the 500 was on the credit side therefore the it is negative

[@dex.cabigting]

"so we've got 5200 keysh.. KEYSH" haha anyway, very informative content sir

[@CPAStrengthPassion]

We got the KEYSH

[@SFA5042]

Your videos reassured me that I switched to the right career. Beginning in January, I'm starting my accounting courses and your videos are surely helping me prep, thank you so much!

[@CPAStrengthPassion]

You got this! Glad you are finding my videos helpful

[@jessilynnzee81586]

im only on video five in this playlist and this is making everything make so much more sense. i have to take an accounting clep exam on monday....six days from now. i thought i knew more material i did and i have to take this to test out. these videos are helping me A LOT. doesnt hurt the instructor is super cute. heyyyyyyy boo

[@CPAStrengthPassion]

Thank you very much. Glad my videos are helping.

[@gelpadilla811]

Question: Why isnt the truck part of the expense? Didnt we buy it? *im new to accounting

[@CPAStrengthPassion]

this is one of my most asked questions. i made a video "accounting for beginners #49" where i explain. keep practicing

[@salmamohsen739]

Truck "equipment" which is same as Assets

[@thestefani]

hi! I'm late, but I just started in my accounting class about a month ago, and I was struggling to remember which side of the T assets, equities ETC went on... but I did get this part, I think -- upkeep for the truck (equipment) would be considered an expense. so the truck itself is an asset-- but maintenance for the truck is an expense.

[@krystal8843]

Please go over financial statements

[@junjing7664]

you have saved lives with these videos...i live in almaty kazakhstan and almost my class passed exams after watching your videos.

[@CPAStrengthPassion]

+jun jing thanks for sharing. I will continue to make accounting videos. I love being able to help people all over the world 🌎 learn

[@revolutionaryfilipinoyouth6989]

i'm an incoming accounting student and this got me reaally interested in pursuing and i totally love your videos, thank u so much sir

[@CPAStrengthPassion]

Awesome, i am really glad i can help out

[@angrygrouch9018]

Instead of deducting 100 as equity, could you just debit it as a draw so that it's $10300?

[@CPAStrengthPassion]

I’ll have to rewatch the video and figure it out

[@joshjohnson8558]

I don’t believe your debit would equal your credit if you did that. Idk this is my first day out here lmfao

[@estherkpangbala8351]

DC ADE LER my strength 💪 I love it😘😘😘😘

[@CPAStrengthPassion]

Thank you 😊

[@gila815]

my accounting prof just blazes through things without explaining anything. I love how slowly you talk and how you explain everything in a simple way. thank you!

[@CPAStrengthPassion]

+Gil A thank you. I did not like how a lot of my professors went so fast sometimes. So I try to explain everything in detail.

[@rsandhu1973]

I don't know what a "good teacher" is, but if the job is to help understand the concepts, you are the best teacher! It was so helpful. Thank you.

[@CPAStrengthPassion]

Your Welcome, i guess i do a good job of teaching after all.

[@Elmo6961]

Why is equity -100? I’m so confused. Can you please explain

[@CPAStrengthPassion]

Money left the business for personal reasons

[@CPAStrengthPassion]

Money left the business for personal reasons

[@traceyriley1444]

Hi, are you there? I have a test tomorrow and have watched up to # 5, but i got a little lost when you were adding up assets to make 5,200$ could you tell me how you did this please?

[@AhsanJaveid]

Tracey Riley add the debit sides cash and credit sides cash and subtract it.

[@HicoBrand]

CASH that go into your business (debit) minus cash that went out (credit). You will then have $5,200 cash amount left at your business.

[@traceyriley1444]

that's what I got. 4800

[@cynthiapetit-homme5788]

Yeah I got lost here to

[@jrphotography]

Cash: $10000 (debit to cash from loan) + $800 (debit to cash from Service Revenue)= $10800 Cash: $5000 (Credit from Truck cash) + $500 (Credit from Rent expense) + $100 (Credit from ATM personal withdrawal)= $5600 $10800 (cash debits) - $5600 (cash credits): $5200

[@KeelyB2318]

First off, you are a great teacher. Second, I'm going to have to watch this video at least two more times to truly understand what just happened.

[@CPAStrengthPassion]

Thank you my friend

[@celinezhang8373]

This is so helpful! I am an Econ student and I am going to a valuation interview where I know for a fact that a laundry list of accounting & finance questions will be asked (the type of stuff I have never studied before). I really needed a straightforward video to brush off the knowledge, and you did an amazing job doing so. Thank you so much!!!

[@CPAStrengthPassion]

Your welcome, good luck on your interview

[@MrSkygel]

can you explain where did you get the 5,200 cash in the asset.

[@booyahdex]

Subtract the total Cash on the Debit Side with the total cash on the Credit Side. eg. (10000+800) - (5000+500+100) = $5200. Hope this helps.

[@Kandisluv]

thatparticularguy thank you

[@yingdelcamp1026]

I was confused this part too,thanks your explanation, got now

[@mkhunaen4773]

I dnt understand this either and im not getting the sum using the method explained either help plz

[@gloriatladi715]

Thank you, i got it now.

[@saqerbassim5418]

Yesterday I dreamed of DC ADE LER 🤦😂😂😂

[@CPAStrengthPassion]

Oh no you have caught the sickness. I'm sorry for you

[@Whattowear]

wish I discovered you in 2012 I dropped my accounting class because I was so confused. Thanks for making it easy to understand.

[@CPAStrengthPassion]

Dang, better late then never

[@Whattowear]

@@CPAStrengthPassion haha yeah the funny part is I'm going to start a job in accounting (A/R). They just want me to know the basics.

[@dariusjackson6681]

I'm taking my first accounting course, and I did not get anything. But you helped me understand this so much more than my professores. you say you are not a good teacher but you really should be a professor your 10x better than the people teaching at my school. thank you so much.

[@judyagcaoili7755]

holly -_- its good but i need to understand where did you get that 5200 ? its all in the cash part then what are the things you added pls :((

[@ahmedhesham6744]

easy cash come from loan 10000 - 5000 truck -500 rent -100 draw = 4400 + 800 service income = 5200

[@lakeishareed9244]

I was lost like Judy but after calculating your numbers I can now see where this number comes from. Thanks for sharing Ahmed.

[@ahmedhesham6744]

LaKeisha Reed you are welcome any time

[@lakeishareed9244]

You were right on you just forgot a step but thank you for showing me were I was lost.

[@ahmedhesham6744]

LaKeisha Reed which step i forget

[@italianrepsta]

2020 (Y)

[@CPAStrengthPassion]

2025

[@geekishsenpai4864]

This video is 7 years old for me and I have learn more from your videos than the two months of my accounting college course

[@jonaswill2040]

This is a huuuuuuuge help for me! 6 months worth of accounting classes gave me nothing compared to your videos!

[@sanniasaleem100]

You keep saying you're not a good teacher but YOU'RE THE BEST!!!

[@josephmiles1392]

I like how everyone in the comments talks about how much better you are than a teacher and my teacher recommended you to me.

[@CPAStrengthPassion]

That’s kinda like inception type level ish. Let’s goooooo

[@josephmiles1392]

@@CPAStrengthPassion I love it thank you! learned more in 40 minutes of your video's than I did with 3 weeks of text book reading. Anyway subed and liking all the videos. D C ADE LER changed my life.

[@CPAStrengthPassion]

Thanks for dropping this comment. It really makes me inspired to keep making content. Glad I could help

[@josephmiles1392]

Thank you Johnathan. I passed my financial accounting class and I owe it to you. Helped me 10x more than my teacher who accused me of just memorizing the answers

[@CPAStrengthPassion]

@@josephmiles1392 You are very welcome. I really appreciate your comment. It gives me purpose to keep making content to help people. Have a blessed day.

[@verppppp3]

Ridiculous how much better I comprehend these accounting concepts after these videos, DC ADE LER is amazing.