Why bank debit & credits are opposite of General Ledger?

[@Viper4ever05]

lol i wish my old manager was this polite when answering questions.

[@Freedomfastlane100]

This is so confusing topic for many accounting professionals at the beginning of their career. Thank you for sharing Bill. 👏

[@foraccoutancy5467]

Thank you for this. Hope for more accounting shorts or advises

[@jennafaith1512]

Thank you!

[@neilcua2373]

The way I understand it - the reason why its a credit on the bank side is because when they received your money it is their obligation and "liability" to return your money should you encash it using cheques or atm or whatever. So basically you gave them money and they receive the money - but they don't own the money and are obligated to return it to you in full amount plus interest. basically when you present a check indicating the amount to be withdrawn - they are obligated to return such amount since it was not their money but yours so the money on their side is a liability while in your perspective it is an asset (Cash in Bank)

[@nextgen178]

Yeah!

[@lyrixo]

Thanks for sharing your perspective, and yes it really made sense.. I related it to NPO's balance sheet as well, in NPO the specific funds are treated as a liability which they have to use for a certain purpose only.

[@张淑佳-g9u]

Those performing evil deeds are usually unaware of their misconduct. Only when they begin to do good deeds can they appreciate the severity of their past wrongdoings.

[@DanielDuhon]

Very backwards. But this finally helped me understand

[@teekaay17]

So pretty much, debit equals income or deposit and credit means expenses?

[@nextgen178]

Not at alll, like this? It's all about four pillars accounting to debit and credit such as--- Income - Credit Liabilities - Credit Asset - Debit Expenses - Debit Hope you find this helpful whenever you are evaluating any transaction in Debit or Credit format. Keep learning and stay positive...

[@inalienablerights]

In the real world. When you pay a bill, it comes out of your money. No matter how you twist the wording, that money is gone.

[@bruverA1]

what if you pay with credit card but never pay the credit card?

[@inalienablerights]

@@bruverA1 If you owe the bank $100, that is your problem. If you owe the bank $100,000,000. That is the banks problem.

[@juanmanuelmanjarres1617]

Hi Can you create a video on the whoteboarx explaining the debit and credits on bank ledgers.

[@shridharjoshiable]

Hi some inter company accounts journal entries with example help Full for interview

[@Karwitha_ckm]

And I am already confused

[@saneworld9418]

Didn't get it again though. Explain in words

[@inthebooks3947]

This is silly he shouldn’t have to do this, in my accounting company we automate this process and i never had to figure out what to debit or credit. I just book the amount

[@Chironex_Fleckeri]

And that's a good point. I can offer some private industry perspective. The majority of businesses are small & mid-sized. Automation is still not always cost-effective at scale, and it's not always easy to implement it in a way that can be maintained. A part of a process may run on toothpicks and bubblegum until that project can be dealt with. It may have controls, but it might literally be an excel equivalent of a T chart at each step. There may be just 2-10 people running the vast majority of the accounting functions. So that includes the financial statements, breakdowns, budgets, G/L, you get the idea. So currently it may require too much time from the controller and their few staff to utilize the consultants they'd be paying to automate something. It's also not cost-effective to automate when the rest of the software will also need (1) workarounds like running spreadsheets for specific processes (2) maintaining (3) possibly re-design critical processes to adjust for new controls. So these projects can be really tough to juggle is what I'm getting at. Because as you know, there's always people relying on accurate&timely information from us, the accountants. Working for a good controller makes the job fun. Specific industries also have to deal with things that will never be designed with accountant sanity in mind. But it's also hard to get around to changing some process that is working _juuuust_ efficiently and accurately enough and leaving a good audit trail. Because there's always something that takes precedence and work capacity is limited. Example: an ACH handles transactions such that it never matches the true -cash- (meant JE) impact, and the software isn't able to fix that or detect that issue because it was not designed for accountants specifically. Just gotta roll with it.

[@ThatdudeJaden]

i knew this straight away and im a 2nd year finance student. Can’t believe someone working a “corporate” job in finance wouldn’t know this. We all get bookkeeping courses right?

[@nicholasshook7513]

Do people really get hired as accountants and not know this?

[@sameerahmed-gx8js]

yes

[@DanielDuhon]

How would you just know that?

[@nicholasshook7513]

@@DanielDuhon because thats something you learn on the first week of ACCT 101

[@accountantintraining4752]

​@@nicholasshook7513Hey, every lesson taught differently.

[@БогданМанн-ж2ы]

Seems to me that an accounted ought to know it. It’s basic accounting man, how you get on work if u dont know such things…

[@zacharyg46]

😥 ƤＲＯ𝓂Ｏ𝕤ᗰ