I have been a bookkeeper on and off for 30 years, so I understand what to do for journal entries. Still, the whole "debit/credit" language always confused me. That is until today! I found this video for an assignment to look for tricks to help with a journal entry. The up and down, action = reaction did it for me. I now understand why spending cash is recorded as a credit! Thank you.
@itsnotif.itswhen2 жыл бұрын
One of the best accounting channels that I actually have the patience to listen to and can understand the logic behind accounting rules. Well done!
@mesha96382 жыл бұрын
This is by far the best way to remember. I wish I would have had a professor to explain it like this when I was in school, but I graduated in accounting/finance. Thanks for explaining this concept well.
@dabananaking092 жыл бұрын
This has been my favorite accounting channel, currently working on my Bachelors and been stressing about not being able to know/memorize everything… so you saying that it’s okay and can even google a question helps relieve my stress!
@andrenaroschelle31542 жыл бұрын
This video was very helpful. I'm in the first semester of my MBA program with accounting being one of my classes and until I saw the acronym DEALER just now I could not grasp the concept of what to debit and what to credit. THANK YOU so much for this!!!
@William140942 жыл бұрын
You're going to hate your life once you get that cushy accounting job. You're gonna be miserable.
@ivyworth8623 жыл бұрын
This is the best description I've seen so far. It's very helpful, and I'm currently using it for a homework assignment.
@leztawh9890 Жыл бұрын
I have watched so many videos on journal entries to understand it. After watching this I get it, the "Action=Reaction to every business transaction" 🙏Thank you so much.
@kibimacheru62283 жыл бұрын
Wooow Action and Reaction and DEALER really helped me. And to know that thinking through it does not make you look stupid is a bonus. Thank you soooo much for your tips
@TheFinancialController3 жыл бұрын
Haha thanks kibi
@ma3ixul997 Жыл бұрын
I wish my teacher would have this patient rather than doing it in a boring way Thank you sir
@hackit95783 жыл бұрын
Thanks Bill, I missed this video 🤭 Thanks for another brilliant explanation. DEALER is a much easier way to remember my Dr/Cr.
@TheFinancialController3 жыл бұрын
Thanks for watching
@MeAntwi2 жыл бұрын
boss i love the way you teach....very simple method to understand....soar higher
@TheFinancialController2 жыл бұрын
Thanks!
@somaansa9392 жыл бұрын
Brilliant! You are truly gifted in teaching. Well done.
@TheFinancialController2 жыл бұрын
Glad you think so!
@tetamarie9 ай бұрын
Thank you so much for simplifying this complex topic. I have a test coming up Monday and i was stressed out but this helped 🙏 Im grateful. God bless you
@TheFinancialController9 ай бұрын
Best of luck!
@clutching_pearls11 ай бұрын
I'm takig intermediate accounting and needed a quick refresher. Thanks a lot!
@TheFinancialController11 ай бұрын
You're very welcome!
@veronicapilkenton68723 жыл бұрын
You are awesome, thanks for take the time to created this videos. I am learning a lot from you
@TheFinancialController3 жыл бұрын
Thanks for watching
@swatigopalan913 Жыл бұрын
Started Learning the Accounting 101. Its great help
@rezzy9202 жыл бұрын
I hear DEALER a lot however I was always taught to know the acronym DEAD. Debit Expenses Assets and Dividends. Everything else has a natural credit balance.
@taragriffin50952 жыл бұрын
Thank you for this video and all others you have created. This has truly helped me. I can understand everything and you give great examples.
@catseye18132 жыл бұрын
Acronym DEALER! Thank you!!! The best!!
@user-zr1pu3hj2t5 ай бұрын
My high school teacher used to say DR the receiver and CR the giver. For example, in scenario 2, salary is receiving, and cash is giving, therefore, we DR salary and CR cash.
@tamannabose17083 ай бұрын
Yea, it's one of the golden rules of accounting (personal accounting rules: debit the receiver credit the giver)
@IrshadAlTiladnet3 жыл бұрын
you did a great job sir. I could not understand easily while studying my B.COM Graduation but you make me to understand its very easily..
@TheFinancialController3 жыл бұрын
Glad to hear that
@1uvp1nk1 Жыл бұрын
You got me! I'm definitely subscribing!!! Thanks for all the help.
@fabiodrada159 Жыл бұрын
Gracias por la explicación tan didáctica. Es usted un maestro para enseñar.
@foreverbeauty89152 жыл бұрын
You may have just saved my Accounting 1 grade. Thanks 😊
@TheFinancialController2 жыл бұрын
You're welcome 😊
@caliguy12604 ай бұрын
Great breakdown of accounting rationale for journal entries. If you understand DEALER and can grasp accruals and deferrals, you can think your way through 95% of transactions for journal entry. Btw love the connection to Newtonian mechanics ( I’m a BioE major 😎)
@TheFinancialController4 ай бұрын
Glad it was helpful!
@aigulboreiy18612 жыл бұрын
Love your channel.much appreciation ❤️
@dotwav883 жыл бұрын
Beautifully depicted and spoken.
@TheFinancialController3 жыл бұрын
Thanks very much!
@zubystaro3 жыл бұрын
This is exactly i was looking for . 9 mins but so helpful . some people are taking more than 50 minutes but i failed to understand
@TheFinancialController3 жыл бұрын
Thanks African life..
@hangnguyen6499Ай бұрын
thank you so much! you re awesome.
@TheFinancialControllerАй бұрын
You're welcome!
@XerathGamingChannel5 ай бұрын
I'm wondering why none of my professors mentioned the dealer acronym, that would have made it so much easier to conceptualize. Thanks I'll keep that handy.
@combustionisthegame28602 жыл бұрын
best one I have seen yet for learning, or refresher
@TheFinancialController2 жыл бұрын
Thank you
@iLoveMelakaCars Жыл бұрын
Tq for the video
@nl69302 жыл бұрын
The "Dealer" system is a bit confusing to me. In Italy we analyze each transaction in its two aspects: economic (is it a cost or a revenue) and/or financial (credit or debt). These two categories work in an opposite way so, if economic is positive it goes to the right (credit ), negative goes to the left. On the other hand, financial accounts follow the opposite rule: positive to the left, negative to the right. Anyway, thank you, really helpful to understand the "English way"
@angellourence3 жыл бұрын
This is a precious 9 minutes of learning, compared to credits I’m taking in uni 🥲thank you for making this video sir, looking forward for another updatess! #autosubscribed
@TheFinancialController3 жыл бұрын
Thanks Angel please check back in
@jaan4khalid2 жыл бұрын
@@TheFinancialController I want to get admitted in CPA .cannu guide me plz
@marvelouss7192 жыл бұрын
@@jaan4khalid Get into another field.
@ornellafamien2 жыл бұрын
New subscriber here! I love your channel.
@TheFinancialController2 жыл бұрын
Thanks for subbing!
@salonnthy16033 жыл бұрын
Thank you, this video was very helpful 😊 please do more videos like this 🙏👍
@TheFinancialController3 жыл бұрын
Thanks, I will
@tripphouse353411 ай бұрын
The best part this video is when he tells us it’s okay to think your way through it and take your time-this speaks volumes coming from a controller!
@TheFinancialController11 ай бұрын
Thanks, yes, no shame in that!
@roxanne7553 Жыл бұрын
you’re a great teacher, thank you so much!
@abdiduale9161 Жыл бұрын
Thank you so much. This was a beneficial video.
@petertenay1785 Жыл бұрын
Wait so an expense is basically a current asset yes? Because when you think about it, an employee is an asset to a company... And an asset is an object that will bring future benefits to tge company... like purchasing a printer for the office...
@ladynatashanicole2 жыл бұрын
Can you offer advise how to go from being a senior accounts payable specialist to accounts payable supervisor?
@GM-ub8qy Жыл бұрын
this makes sense, but I just started accounting in real life and we work with so many accounts that are not easy to know on which side of the balance sheet they belong.
@TheFinancialController Жыл бұрын
Try to watch videos on KZbin to learn
@4Brandy4 Жыл бұрын
Thank you for this video! Having the explanation for the action=reaction is very helpful. I am wondering however, why is it Dr and Cr? It seems like Cr would be short for credit but why is it Dr? Thank you again for your time!
@ilonacwioro34902 жыл бұрын
You are absolutely the best!
@epruepru14269 ай бұрын
Perfect.🎉
@opeyemiisaac-oni7644 Жыл бұрын
This is so helpful. Thank you
@abdullahimusa97612 жыл бұрын
Hi Bill Hanna, I would truly appreciate if you made a video on the job marketability of accountancy professional qualfications such as ACCA, CMA etc. Thank you.
@LAUGH-LEARN-AND-GROW Жыл бұрын
I like the acronym? :) and the action and reaction ,though I am still confuse how to debit and credit.
@bradleydavidgood Жыл бұрын
What do you mean when you say assets have a debit nature? Sounds backwards to me every time i hear about what gets credited and debited. But no one ever explains that. And it seems backwards to credit cash when you paid a salary in your example.
@henrysonneewray58053 жыл бұрын
Thanks so much for the tutorial🙏🙏
@TheFinancialController3 жыл бұрын
Thanks for watching!
@kenesharowe7414 Жыл бұрын
Thanks alot. this is really helpful
@kiarasara74352 жыл бұрын
explained it better than my professors
@anira15042 жыл бұрын
Hello could you please explain about consolidation entries, Business combination valuation entire
@timothysmith43433 жыл бұрын
Can you go over the chart of accounts of different industries for classifying expenses for accounts payable? Example: like raw material freight in expense is classified as inventory, but what about freight out for a manufacturer? Still inventory? A retailer? Selling expense? Sometimes signs are classified as signage, but other times it is classified as supplies, advertising, building improvement or building maintenance.. Building a ramp for the disabled customers is supply or building maintenance, how about a ramp for disabled employees? Is there a difference between accrued telephone, telephone, communication account titles and if so, does it depend on the industry. A fence around an apartment complex is land improvement, but what about the security gate or the fence around the pool (a legal requirement) for safety and to keep non-residence out. What is coaching expense for a real estate agent? The repaving of parking lots? Capitalized to land (cannot be depreciated) or land improvement or building repair? Etc...
@jaan4khalid2 жыл бұрын
Did u get answer?
@AishaAllie-x6n10 күн бұрын
It was nice
@anjoedaviscatholic91432 жыл бұрын
Best explanation. Keep it up!
@mohammedshareef63792 жыл бұрын
Great knowledge shared with us Thanks and regards May God bless you
@Conversation_Guy Жыл бұрын
nice vid :)
@annatsukanova44482 жыл бұрын
Thank you so much!
@jmusman61882 жыл бұрын
what would be the best entry if invoice was not receive for a year?
@zarnilin77372 жыл бұрын
Thanks Sir It is a big help❤️
@livin6757 Жыл бұрын
very nice and informative video. simple, full of knowledge. no dramatic b*llsh*t. 👍👍
@TheFinancialController Жыл бұрын
Glad it helped
@adamsaldana54623 жыл бұрын
How about recording a business loan? Would it be a dr to cash and a cr to notes payable?
@TheFinancialController3 жыл бұрын
Correct!
@ahmadaliyu12422 жыл бұрын
Please I'd like to understand the difference between Journal entry and Book keeping? Thank you
@ahmadaliyu12422 жыл бұрын
...there is also ledger and trial of balance, so many title
@frostypaws14 Жыл бұрын
Great video. I'm studying for FAR and I've been having the worst time with the journal entries for changes in fair value of AFS investments. Particularly because we're dealing with valuation accounts and and contra asset accounts. Is there a way to fit in those types of accounts into the DEALER mnemonic?
@miniepink47812 жыл бұрын
Thank you so much
@Sally-sy6um3 ай бұрын
What are bill payments. Like accounting or legal fees... considered to be?
@scoteaton63423 ай бұрын
Is it a service you're paying for? You're taking from your equity to gain an expense.
@lastnamefirst6502 жыл бұрын
Thank you!! Curious, I tend to overexplain stuff so I want to be more concise in my entries. What’s a good method for recording the nature of the transaction? For example, say I own a golf shop and a customer paid for lessons half in cash and half on account for 10 day credit terms. Would my wording say something like, ‘customer paid for lessons on account and in cash’ Or does it make more sense to say ‘customer x paid for lessons’ as we can already see which accounts are affected? Thank you for any help!
@sandugvr2 жыл бұрын
Office supplies can be considered as an expense? Or only as an Asset .
@Bad_Fur_Day3 жыл бұрын
Great video. However, isn’t office supplies an expense that hits the P&L and not an asset on the balance sheet?
@TheFinancialController3 жыл бұрын
Hi. In general, supplies are considered a current asset until the point at which they're used. Once supplies are used, they are converted to an expense.
@xyz11zxc113 жыл бұрын
@@TheFinancialController Most companies don't capitalize office supplies and instead expense it as its expected to be consumed in a short period of time and also the de minimis nature of the costs.
@MS-zp7bt2 жыл бұрын
So any of the abbreviated accts = DEALER can be be crossed over as Debit or Credit depending on the transaction right ??
@blaisekasongo1775 Жыл бұрын
Perfect!!
@ilakkiaselvi202 жыл бұрын
Thank you👏🏼👏🏼👏🏼
@lutwin68632 жыл бұрын
Can you make a video of general journal
@nurlatifahmohdnor89392 жыл бұрын
What is ledger?
@harlangleeson94962 жыл бұрын
thanks!
@cynthiatruphena66933 жыл бұрын
Well understood
@TheFinancialController3 жыл бұрын
Thanks for watching:)
@marinatolo2 жыл бұрын
And cash is a liability ?
@ramkumarsankaranarayanan73994 жыл бұрын
wow, Thankyou sir.
@TheFinancialController4 жыл бұрын
You are welcome!
@soccer25572 жыл бұрын
how to deal with credit transaction in journal entries?
@jaan4khalid2 жыл бұрын
Account receivable credit Purchase debit
@benitezmylajoyb.47302 жыл бұрын
What if. Dr. Tan opened his dental clinic on January 2 and invested the following: Cash. 50,000 Dental equipment. 100,000 Office equipment. 20,000 Office furniture. 40,000. Help pleaseee. I can't make my journal entry because of this😭😭
@jaan4khalid2 жыл бұрын
Everything is debit Capital account credit
@Perfectsound883 жыл бұрын
Hi Sir-Please help me with this Journal Entry-Scenario is-My Company's Rent for year 2020 is $120,000/-.I received the invoice from Real Estate on 5th Jan 2020.But I will be paying the entire $120k only on 10 of April-2020.Can someone help me with the complete journal
@mish29783 жыл бұрын
When you received the invoice the journal entry would be: RENT A/C DR 120k OUTSANDING RENT A/C CR 120k When you pay it then the journal entry would be OUTSTANDING RENT A/D DR 120k CASH A/C CR. 120,000
@Perfectsound883 жыл бұрын
@@mish2978 Thanks Sir.But when the Invoice is received how would you Debit the Rent A/c as we have just received the Invoice and $120k is not an expense for that month.Please let me know if I am wrong.
@ahmadkidwai31412 жыл бұрын
DR Prepaid Expense- Rent 120K CR Accounts payable/Cash 120K And then each month you amortize the rent (spread the rent expense through out the year) DR Rent Expense 10,000 (1 month rent) CR Prepaid Exp-Rent 10,000
@malamofficial755810 ай бұрын
❤❤❤
@yabarichard24352 жыл бұрын
Wow
@d0rk3 жыл бұрын
Mind blowing! This is not taught in school. Booo
@TheFinancialController3 жыл бұрын
Thanks!
@armelletafempa29543 жыл бұрын
another acronym is DEAD CLIC (Debit Expenditure-Assets-Drawings / Credit Liabilities- Income- Capital)
@TheFinancialController3 жыл бұрын
Good one!
@talalkhwaja53262 жыл бұрын
DEALER!
@jaan4khalid2 жыл бұрын
Property dealer 🤪
@varshakamble12082 жыл бұрын
🙏❤❤🙏❤❤
@arislopez4113 жыл бұрын
That 'DEALER' stuff is misleading. Journal entries should be recorded using basic, direct rules of debit and credit. I don't like cutting corners.
@jaan4khalid2 жыл бұрын
Acronym to rote learning
@marvelouss7192 жыл бұрын
English is not your first language. Where are you originally from?
@William140942 жыл бұрын
He looks like he hates his job. Just look at the bags under his eyes.