Acounting for beginners number 27 thank you for coming back again this is my
classic series if this is your first time hit subscribe so you can see more
if you're back if this is like your 27th video watching me go see a therapist to
make sure you're okay so let's just get right into US accounting for beginners
number 27 let's go this is the last this is the last video of does the
transaction increase asset what's a transaction paid a utility bill
$500 let's make our journal entry first and then we're going to answer the
question you have no idea about anything you hurry up and write DC a blur on your
paper then as you've been doing as you've been practicing every morning for
a month straight two months straight you know what this is in your brain but
you're just going to write it out on your test paper anyways DC a blur DC aid
ler debit credit asset drawn expense liability equity revenue these are in
the positive forms that's a neck that's not a plus I swear
to God what's wrong with me sometimes what I would do I would just start
writing a journal entry but even know sometimes I still I still just rake I
still write this debits and credits I still do this sometimes for me even
though like 10 years deep sometimes I don't know just so I can see it kind of
so I can see the different sides coming out but I'll put a debit credit now once
again I found the best way to find neither good nor bad bad or good left
and right debit is the left side of the double or double entry accounting
equation or the journal entry debit is the left side
credit is the right side and they're always always always always going to
equal just always going to equal so I pretty much love this the double entry
of double entry accounting system once you learn it you don't forget it doesn't
change and there's some stead fast rules steadfast rules being
dab it on the left credit on the right side of the journal entry of the
equation they are always always always going to equal so I'll put an equal
signs here equal signs here always always always getting equal like
when you're on um accounting software you're doing bookkeeping like QuickBooks
or easy to counting or whatever system you might be using to write down journal
entries you can't leave you can't leave the page or you can't leave the the
transaction if they if the debits and credits don't equal so it's just a very
steadfast rule does does the transaction increase assets I don't know what's the
transaction paid a utility bill for five hundred dollars all right so let's think
paid a bill five hundred dollars do we have cash in here going in or out first
thing I like to do do we have cashier paid a utility bill five hundred dollars
Bing Bing Bing Bing Bing Bing Bing we've got five hundred dollars we've got five
hundred dollars they don't say cash but paid so that's money that's my chippers
dog so I got chippers going out I got five hundred dollars going out goddamn
it goes fast don't it go love lot faster out and in huh
so love Bing Bing Bing Bing Bing Bing Bing Bing Bing Bing Bing Bing Bing Bing
Bing Bing Bing we've got five hundred dollars
hundred dollars here now pain is in the perfect world they say you have cash out
going in the amount of $500 but cash out going also means paid somebody just if
you don't know just think like I paid somebody to dollars that I owed oh I
paid I paid somebody five dollars so what here here's your five dollars so I
have less cash right so we all know by this time
cash is an asset what do we have we have cash in a negative form so here's how I
see kind of assets it's like going in here going out over here flip so we have
five hundred dollars paid cash leaving our business that's going to be our
credit cash is going to be our cash is going to be our credit because it's
leaving and how much cash is leaving our bank account how much cash is leaving
our business five hundred dollars what bucket is cash in we already like
it's in the asset bucket there's our credit side it's cash cash
is an asset five hundred dollars go asset going down so it's on the credit
side all right so once again we got cash we got half our half for journal to
correct now we are going to move into our dinner and we're going to move into
our debit side what did we do what did we do with our five hundred dollars like
yeah over here we know you know you spent five hundred dollars on something
what you spend it on what you spend it on a utility bill all right utility bill
for your business if you spend money and you have no idea what it is I would say
you could just if you have no idea just put an expense because most likely
that's why you spend most likely money coming out of your
bank account is to try to is on things to try to help you with your business
and that's a business expense when are you coming out business expense if it's
for the business so utility bill so entire business accounts so it is it
your office whatever a utility bill it doesn't say monthly but I think you
know usually utility bills are monthly they paid a year in advance that it
might be an asset but that's a different story
so a utility bill is an expense you would know that
and so expense in the positive form is a debit or let's say you didn't even know
what let's say you had no idea what category utility bill utility bill is
you have no idea is utility bill an asset is it a drawers and expenses
liability equity revenue I guess just a little a little hack here you could just
you know these always have to equal if you just put utility bill you have no
idea utility bill you can just put that in the debit and how much how much is it
going to equal how much was utility bill four or five hundred dollars also you
know you can I always like to work from the cash first but if you if you know Oh
utility bill if you know utility bill utility expense you know that's an
expense and you know expense is a positive debit you can just wear you can
write the utility bill first and go over the cash and do the cash second what's
our what's our journal entry debit utility bill $500
what's our credit cash $500 oh I'm sorry what's utility bill utility bill is an
expense utility bill debit for five hundred dollars as our as our journal
entry and utility bill is an expense and is going up because yes our utility bill
expense is going up because we just paid five hundred dollars so it's increasing
we're five hundred ollars our utility bill expenses our credit side we have
cash for five hundred cash is an asset since it's on the credit side it's going
down well let go here and let's answer this mug
do you guys know it paused alright you don't have to you can back
nice does the transaction increase assets expense well that's not an asset
so we don't know oh we have an asset over your cash wait it's going down so
we have assets going down so we have assets going down and not going to
happen boy thank you so much for watching I feel like I'm getting my
rhythm back again a little bit and working with a new camera here the I
think 26 AFB 26 and 27 is going to new camera so I'm working on like the focus
and everything hope it's getting better anyways I really appreciate you watching
I really love make you know