hello everybody. we are back again. we're going to do a journal entry for this
one. it's just something that I was thinking about. that really that I had a
hard time when i started, Accounting and I don't really know if i explicitly touched
on it. so we're going to do a journal Entry here. Buy a desk for
$500 and so, now the way you get better at this is just, you know
repetition, repetition, repetition, repetition, and you know, after a while,
you won't even to have to think. you write, DC/ADE/LER and after I mean
thousands of journal entries, hundreds whatever, your not even going to have to
think, Debits on the left hand side. Credits on the right hand side
positive Assets is a Debit
wanted to touch on, is that i think i said before, these are the
positive, these are positive sides,
the Debits and Credits have to equal. you're going to have at least one debit
maybe more, at least one credit, maybe more, and they're always going to equal
I've already touched on before that, Neither Debit or Credit
not one's good
I mean, Debits not good or bad, Credits not good or bad. it's just the left side or the
right side, what i don't think I've talked about before, is that you can have
Assets that are positive over here, but you can have
One Journal Entry With
two Assets. one is going to be positive. so thats going to be the debit
side. and then another Asset is going to be negative. that's going to the Credit side
It kind of threw me off before. You can have a Journal Entry With 2 Assets
that's fine, you just have to have
a Debit and Credit. and we're already at like three minutes, so let me just do
this one.
ok, you buy a desk for $500
alright, so i always like to do my cash first
so, five hundred dollars cash, now that's an asset right????
cash is an asset. ok, and you bought it for five hundred dollars, so that's
leaving, so positive side Asset over here is debit, so it's leaving, so that's going
to be a credit, because it's negative cash, so this is this is positive
Debits positive, the Credits going to be a negative asset over here, right??
so, that's going to be the credit, going to have cash
500
Sorry, i think you put the Dollar amount first when doing a Journal Entry
You write a Journal Entry like this
the Dollar amount first but that's gonna be our credit. now, what are we getting ???
We are buying a desk. so we're getting, we're getting, an Asset that's a desk so you're
going to have the the positive over here, because it's a, we're going to debit the
asset, that's going to be a $500 desk over there, so you see that we have.
these are both Assets, and ones you know
cash is leaving, so we have a negative Asset, and we have a positive Asset, but
the Journal Entry is of 1 category, is an asset, so and of course that will
match for our Account Equation, because you get more of one asset, and less of
one asset, so and go i'm going to do Accounting Equation:
Asset = Liabilities + Equity is the Accounting Equation. that's the Balance
Sheet
this is the Income Statement
anyways we are six minutes in, I wanted to do this fast, but anyways, just wanted to
reiterate, the Debits are always going to equal the credits, always, always,
always, always, always, and you can have 20, a lot of times you
have a lot of expenses 20 Debits
1 Credit, or vice versa, but they're always going to equal, but i want you
to also know, that it doesn't matter if you know this journal entries is comprised of
assets, that's it, and you know the DC/ADE/LER which i always
do, DC/ADE/LER that's the positive sides, so you know, so like in this
example the cash asset is leaving, so that's a negative, that's a credit,
if anybody likes these examples, you know, i'll just do, maybe
some examples, and we can go over them and stuff, but I anyways, you a great day !!!!!!