yo CPA strength here back with another video this is accounting for beginners
number 90 balance sheet in five minutes I have a whole other series you can look
on this playlist over here for anyway so let's get into this balance sheet in
five minutes we're gonna start off with our dc-8 large you don't know about GCL
or if you have instead of videos watch some other ones have our base for
everything and now out of that we have our balance sheet which is assets equal
liabilities plus equity All Right see here's the dc-8 ler asset see the
balance sheets in there so this is the balance sheet and then this is the line
are these always this is always equals here and the balance sheets in there if
you can't remember what the balance sheet is just the balance sheet is
assets equal liabilities plus equity now let's just think about that it balances
write the name of it as balances so if you can remember what each side of it is
write one side is asset see the asset is one side and the other side is
liabilities plus equity that means you know both sides okay you know you know
the two sides okay one is assets the others liabilities and equity and they
balance so this is my kind of balance beam or whatever these are you know
these have to equal and they balance the same values you know if you have five
thousand over here this has to be five thousand over here I got a question and
said hey assets is like money and stuff you have and then liabilities and stuff
you owe to somebody so I don't understand how they equal so I think
they're forgetting that equity was equities part of its liabilities plus
equity we're gonna do cash twenty thousand dollars and we're gonna do a
vehicle twenty thousand dollars so that means our assets are forty thousand
dollars so that's what we have in the company we have cash $20,000 and
a vehicle $20,000 or $40,000 their assets so that means what has to balance
on the other side of this what has to be either a liability or equity is $40,000
what is a liability is what you owe somebody liability is Oh somebody equity
is what we have in it what we own what we have in it what we own okay
so us so what is this comprise of liabilities own it to somebody the
equity is we own it so do we own it or owe it side of this
$40,000 out of this $40,000 right you can say how much liability do we have
we're gonna say 10,000 liability and how much equity we're gonna say 30,000 in
this first example so in this example we have $20,000 cash $20,000 vehicles of
$40,000 assets so we have to equal that with our liabilities and equity now in
this example we have $10,000 $10,000 liability and $30,000 equity you know I
have what liability is comprised of in other videos and I have what equities
comprise their other videos as well but basically liabilities is what the
company owes somebody and equity is what the company owns so in this one in a
brief second you can see the company has $40,000 worth of assets they owe
somebody 10,000 to that and they the company controls 30,000 of that so it's
kind of looking you know like a decently strong company all right let's reverse
let's reverse facts they still have $40,000 in assets but we're gonna just
switch this ten in third we're gonna switch the liabilities and equity
we're gonna go $30,000 liability and 10,000
equity that means that the $40,000 the asset they have with $20,000 cash and a
$20,000 vehicle over here on the asset side that means what is it comprised of
year we know this is in the business but do they own does the business owner do
they owe all that to somebody else when you look in three corners over $30,000
$40,000 they owe to somebody else so they don't even have that in theirs so
anyways that's five-minute balance sheet remember they always have to balance
assets equal liabilities plus equity and we get that off DC abler this is CP a
strength they love doing this and let's see I'll see you tomorrow
deuces