Journal Entries Hacks 🧐. Two Methods to NEVER forget Debits and Credits

[@igniteacademic]

This is the first genuine explanation from first principles that I've come across on the internet.

[@TheFinancialController]

Thanks brother

[@arhaandesai7649]

In India we have 3 rules for journal entries 1- Debit what comes in Credit what goes out (For example you buy a new computer for 5000 so computer comes in your business so DR and cash goes out so CR) 2- Debit the receiver Credit the giver (This is mainly used for your bills let’s say you bought goods worth 3000 on credit from John. Now here john is the giver of the goods so he goes CR and purchase of goods comes in your business so DR) 3- Debit the expense Credit the income (For example you have to pay 10000 salary so you made an expense so you DR salary and money goes out of the business so cash/bank will become CR. Another example having two rules in one journal entry would be Let’s say that you received 100 as dividend so here Credit the income dividend would be CR and debit what comes in so cash comes in it would be cash/bank DR) Hope you guys found it helpful

[@reverseguys3372]

i'm from india as well.. yep golden rules of accounting really helps one to understand when doing journels or direclty positng in the ledger.

[@tfarinacci6216]

Sooo helpful thank you!

[@mariamlsmail2511]

Thank you. How about an example with cash over/short amount. How to make entries using checking account.

[@lasselarsen5449]

thanks alot, was really helpfull!

[@mosesnjuki9031]

❤❤❤

[@Gi_Lovely]

Not me pausing your video and answering your questions to test my knowledge! hahaha I wish I could save your whole channel. Thank you 🥲

[@TheFinancialController]

Thanks GI!

[@andreawotherspoon952]

Hi I'm from SA.. im 55 and that's the best explanation I've ever heard..could never get my head around those accounting equations

[@astrocatcity]

I’ve always said that double entry accounting, and the accounting equation is sublimely beautiful.

[@TheFinancialController]

Haha I like it!

[@joshcampos62]

I’m accounting 2 right now. This is the best channel I have found for studying!

[@EricaHennings-q8h]

This video explained in 15 minutes what I have been trying to learn for WEEKS! Thank you. The biggest takeaway for me is everything is relative to equity.

[@TheFinancialController]

Wonderful!

[@syedm4657]

Please put more videos on accruals income and expenses, prepayment income and expenses. How do we treat in the regular organisation transactions. What are the JEs. Treatment in financial statements.

[@HeatherHollaway-bv4kc]

You just blew my mind away by explaining the Dealer method in the accounting equation. I now understand how they relate. I have got a lecture on accounting so this was extremely helpful. I about half way through my accounting degree and this helped me understand when I am doing entries how to classify where they go. My professor actually told me about your videos! Thank you!

[@vuyanimas3845]

Eg.4 AR is affected by credit sales rather than cash,so relevant accounts should be Revenue and cash/Bank, Credit and debit respectively

[@rosiewills2431]

Thanks you so much. I am truly appreciative of the time you took to do this. I have ptsd from accounting in HS. ❤😊

[@LunaPriscilla]

This video is golden, I'm about to graduate in Accounting and I have my last big exam tomorrow, this is a quick refresher. Thank you!

[@Chironex_Fleckeri]

(Owner's) Equity for me was tricky to grasp. The accounting equation A=L+E is algebraic, meaning you can say: Assets-Liabilities=Equity . A-L=E So now what are the main components of equity? Equity = Contributed Capital + Retained Earnings

[@joecoleman288]

I'm no accountant, but I run a small business. My current understanding of this: When my company sells a $10,000 project, for reporting it must equal my costs for the project ($3,000) plus my equity ($7,000). $10,000 = $3,000 + $7,000.

[@badisheffey4550]

This was soo helpful for a conceptual point of view. Amazing how a little nugget of information or small change in notion can make a concept finally seep into my brain....after 6 years of classes and work. Thank you very much!!

[@TheFinancialController]

Glad it was helpful!

[@lmwold]

The Accounting Equation, 100%. But thank you for showing both. Keep up the great work.

[@ismailmasoom5007]

I am studying Accounting for the first time and it was a bit confusing but thank you to the youtubers who makes things very easily understandable. in my accounting chapters I see fives kinds of accounts like assets, revenue, liabilities, equity and expenses. Here in the first method I saw dividends as well.

[@deisyosegueda9386]

Thank you so much for such wonderful tutorials. I've been an accounting clerk and really never understood the concept of accounting. I was just like a robot matching, entering invoices into the system. Until one day, I woke up wanting to learn more and more about accounting, how the payable process impacts the financial statement and oh boy... and now I just want to keep learning. Thank you again for your videos!! Super helpful!!

[@TheFinancialController]

Wow thank you!

[@TopRapter]

I have 0 knowledge in accounting but i want to learn some stuff because im thinking of getting an education in it. This video clicked in my mind and now i understand debit and credit. thank you so much!

[@TheFinancialController]

Good luck and thanks for watching my video!

[@pascalmadanat5412]

Thank youu, it's really useful video. I enjoy it. We need more videos.

[@questionresearch8721]

I love it. Your channel is excellent. I remember my first accounting class and I remember how I understood everything. 🙂

[@Freedomfastlane100]

This is indeed the simplest way to remember how it works! 👍😊

[@rhyme6300]

Excellent videos! I don't know anything about accounting but I can understand easliy with your explaination!

[@mstephen5438]

Thank u for explaining the 2methods lots of clarity on the concept 👍

[@durraa7447]

wow U explain such a simple way. You are an amazing teacher. still confuse after waching your video all concept is so clear.

[@TheFinancialController]

Glad to hear that!

[@johnhammond5467]

This is my first time seeing the DEALER acronym. Thanks for the additional insight. #RookieAccountant

[@Chronoic]

I was taught method 2 in college, and it makes the most sense to me, and to me it seems like common knowledge.

[@nzajijanota7105]

Thanks for the explanation. That was a good and clear one for an engineer to understand.

[@PaulsVlogs42101]

i was literally stuck at this point just could not get it until after watching this video. thanks so much💯💯

[@TheFinancialController]

You're very welcome!

[@harleengonzalez2364]

This is the best video ever. Thank you so much. No one has ever explained it this before.

[@TheFinancialController]

Thanks Harleen!

[@mememe84]

"Owner's Equity is what you owe to the business owners" ...finally this formula makes sense! I cam here just to thank you for this quote. It should be written on every accounting text front cover.

[@LaToyaSimone]

Thank you. Going to school for accounting now and this is helpful ☺️

[@TheFinancialController]

Best of luck Latoya

[@hazemgamal696]

Super Simple ! Thanks Bill for making it very easy.

[@Blackgirlscode853]

Thank you so much!! I have midterms coming up and You really helped me to understand journals, debits and credits. I am extremely grateful.

[@TheFinancialController]

You are so welcome!

[@roscokelky5972]

Thanks bill, Appreciate the explainations on data flow, Great stuff mate.

[@TheFinancialController]

Glad you enjoyed it

[@susangoncharenko7172]

So useful!!! Thanks a million!!! I think I finally get it😅❤🙏

[@poonamtambe6605]

Very well explained 👌

[@TheFinancialController]

Glad you liked it

[@themanfromoregon6047]

They don't teach Dealer at my school, but I've been tutoring for the last 4 terms and it's the first thing I teach anyone in accounting 101. I'll have to practice seeing how I can break down the accounting equation in a more helpful way.

[@yamiletheisele500]

You are awesome! I love you! Thank you!

[@circologroup3935]

This guy is solid thanks for the videos

[@omomeosakue5635]

This is really good stuff, made it so simple, thanks!

[@questionresearch8721]

I was waiting on examples. 👏👏 Thank you!!!

[@shahnilakhan900]

Your videos are helping me alot … Thank you so much 😊

[@dinaayala6401]

Great lesson. I finally get it!

[@TheFinancialController]

Great job!

[@nadeermusthafa2847]

This video helped me a lot in my work. Thank you

[@TheFinancialController]

Glad to hear it!

[@benittazimba3704]

As an accounts clerk this is so helpful, thank you.

[@thewreathmeshine]

Thank you so much for the clarification! I was struggling until I found your videos!

[@vishwavishwa2188]

The dealer method is so easy to understand. Thanks❤

[@TheFinancialController]

You're welcome 😊

[@bduran7086]

I found the equal and opposite force analogy incredibly useful in moving forward in being able to implicitly understand journals and DE accounting when I first started, DEADCLIC just always seemed so clunky!

[@ImpulsivePursuits]

Thank you so much! This was very helpful ❤

[@TheFinancialController]

Glad it was helpful!

[@lexthompson4046]

You brought it together great man.

[@kwamebaidoo9601]

Thanks for the video. I learned this a long time ago but I was surprised when the bank used the term credit (to my bank account) whenever I deposited money. I asked my accounting teacher why they were doing it backwards and he took the time to explain to me the differences in the recording especially for third parties. And oh I think the Div in the acrostic (DEALER) needs a qualifier since you're referring to a Dividend expense the reverse would be true for a Dividend Income which is rare but could actually happen.

[@WDWysong]

Excellent. Great info, clear explanatoins!

[@TheFinancialController]

Thank you!

[@Madhavjohar08]

Lots of love from Melbourne

[@In-no]

Thank you so much for the video

[@lindakirby2540]

Amazing video. Accounting equation so beautifully explained 🙏🏻

[@TheFinancialController]

Thanks so much!

[@amarachiuzoma4007]

Thank you, Sir!

[@BefGech-cj3kr]

thank you very much I 🙏🙏🙏🙏🙏 it is easy way to know debit and credit account (DEALER) it took me a long time to memorize it Before

[@TheFinancialController]

Thanks!

[@920WIZCO]

Thank you for covering all of this, can't wait to start using some of this once I finish my schooling!

[@TheFinancialController]

Thanks Brent

[@smoovecriminal7]

This was great !!! Thank you!

[@humbatgasimov6452]

Wonderful video.

[@moseschileshe9297]

This is fascinating it's simple and clear

[@moseschileshe9297]

Thanks very much and I need a video on ledger account

[@syedm4657]

Awesome explanation 👌 always accounting equation helps. Not the dealer method as it's confusing sometimes.

[@Rasulkhanzade]

Great and So useful 🔥🔥♥️

[@Aquavald]

Hello Bill. I have been enjoying watching your finance and accounting videos. Could you please post a video on explaining inter-company transactions with particular example on software sales between affiliated companies and their impact on balance sheet, income statement and cash flow statement. Thanks a lot in advance.

[@TheFinancialController]

Great suggestion!

[@mubarakosman362]

Men, thank you so much this is very helpful

[@TheOnlyTeeJayB]

Great video, really helpful! In example number 2, if the PC is purchased on store-credit to pay later, it would become a liability, under the owe-side of the equation, which now requires a credit entry to increase liability and the same debit to increase Equipment (PC) as in the video. Eventually, we would reduce the liability with debits equal to payments made towards the PC and crediting the cash account for the equal amount of our payment. This could take a couple payments / entries depending on the payment plan until the liability is at 0 and the cash equal to the cost of the PC has been taken out. Is this an accurate understanding?

[@FebuDebesay]

I am understanding you very well so keep it up and thanks

[@TheFinancialController]

It's my pleasure

[@vuyanimas3845]

My method is similar to your #2 Assets Expenses AE +Dr Owners equity, Income & Liability OIL +Cr AE vs OIL Dr - Cr

[@ericxyz6676]

Easiest way is to think of everything in cash. A debit to cash increases it therefore you can arrive at what makes anything else increase or decrease.

[@brendatrevino4320]

Hi thank you, I’m a junior in my university and my major is accounting

[@ikomaster2976]

Please create a video on how to be an accounts payable staff and what they do on a daily basis. Thanks!

[@TheFinancialController]

I already have a video on the channel for accounts payable

[@matinpeiravian8097]

Thanks .You re Amazing!

[@faizs9676]

May be you should explain equation through ..... Business point of View ..... Business owner becomes the Part inside the equation ..... so the accountant becomes ..... a business ..... who keep its own records ..... in interactions with other business and other entities ..... just my thoughts .... I am from Maths background ....

[@alexarevalos8459]

Best explanation. Thank you

[@TheFinancialController]

Glad you think so!

[@kevs1235]

Hi, Many thanks for this. Really helps. Does this technique and method and your courses work for UK accounting rules and regulations please? Thanks

[@juanmanuelmanjarres1617]

Can you do an example of what it looks like when you sign for a mortgage and car loan What it looks like on the banks ledger please?

[@xBodyLanguagex]

This is awesome thanks

[@TheFinancialController]

No problem!

[@josephgarangthiep9579]

VERY INTERESTING

[@crazyjester993]

13:00 t accounts for explaination

[@BlessingBewu]

Thanks it's helping me

[@Factors_of_production.]

Good work CPA BILL HANNA, learning from Kenya

[@MikeRed-wi9tz]

What are the e best places to shadow an accountant during school?

[@magaliethauvette447]

Hi! I recently stumbled across your videos. I’m starting at Big Four in tax this Fall. Any chance you can go over exit opportunities or how to go from tax accountant to controller? I feel like most of your videos go from audit to controller. Am I limiting myself by going into tax?

[@TheFinancialController]

Tax has diff exit opps. I will try to cover

[@franklinisla4340]

The D can also be DRAWINGS because owners drawing also have a debit normal balance

[@heircarewitherin]

this is IT! this that video! it clicks here!

[@chriswesterheide6431]

Your videos are amazing. I have subscribed and am considering the 5 hour course! One basic accounting tenet which I cannot get through my dense skull is why $100k cash coming into my business is recorded as a debit. It seems so obvious to me that the extra cash is only a credit. Is it just a term that doesn’t actually mean “debit”?

[@TheFinancialController]

Welcome aboard! When cash goes up, a bank statement calls it "Credit" because from the bank perspective, they owe this money to us, therefore it's a liability and liabilities are "Credit" nature. We call it "Debit" on our books because it's an asset and assets have "Debit" nature. Hope to see you in the online course Chris!

[@FRANKWHITE1996]

Thanks for sharing

[@michaelw2108]

At first in class I was confused on homework where up/ down arrows increase / decrease and what goes where.

[@RoshanKumar-mp4wg]

Hi, I need your help to undertstand that in case of any uncollectibles from customer is recorded as Bad debts but in the books of Customer what accounting entry has to be passed for this?

[@fatoumatamukelabai5878]

Interesting 😩😩 really been hard for me to get this don’t know why. But the DEALER hack is promising

[@marcelacastromontanares5352]

boooom in my brain jajajaj thank I am a new fan for your videos !!!

[@MindofMeowOfficial]

Dr the cash and Cr the equipment right?

[@nourkarim2721]

Thanks!

[@petertenay1785]

Is there a way to remember the accounting cycle?

[@funmasti29]

Sorry, but I am asking a stupid question. @12:55 , cash/computer purchase transaction. Cash reduced= can we not take as Expense increased ????? Plz help 😢

[@goood367]

The basic rule is... First you consider What is coming into the business.... For example computer purchased for cash 1st try to see what is coming into the business Computer is coming So computer Asset will increase So computer account I'd debit And cash account is created

[@ucheokoyeinuluonum4296]

Please talk about getting a certificate from corporate financial institute for financial analyst

[@ICUSocialWorker]

We use this system in my MBA

[@manuelmedina7969]

For me the way how I get it practly and easy recognitions about any transaction Is deffinetly method 1

[@janeyue7491]

First time heard of dealer. I mostly heard dead! Debit = expenses, assets and dividends! So the rest are on the credit side!

[@donthurtdachild9387]

excellent