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Accounting For Beginners #12 / 1 Journal Entry With 2 Assets / Basics - YouTube
Channel: CPA Strength
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hello everybody. we are back again. we're
going to do a journal entry for this
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one. it's just something that I was
thinking about. that really that I had a
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hard time when i started, Accounting and I
don't really know if i explicitly touched
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on it. so we're going to do a journal Entry here. Buy a desk for
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$500 and so, now the way you
get better at this is just, you know
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repetition, repetition, repetition,
repetition, and you know, after a while,
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you won't even to have to think. you write,
DC/ADE/LER and after I mean
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thousands of journal entries, hundreds
whatever, your not even going to have to
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think, Debits on the left hand side. Credits on the right hand side
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positive Assets is a Debit
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wanted to touch on, is that i think i
said before, these are the
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positive, these are positive sides,
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the Debits and Credits have to equal.
you're going to have at least one debit
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maybe more, at least one credit, maybe
more, and they're always going to equal
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I've already touched on
before that, Neither Debit or Credit
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not one's good
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I mean, Debits not good or bad, Credits not good or bad. it's just the left side or the
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right side, what i don't think I've
talked about before, is that you can have
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Assets that are positive over
here, but you can have
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One Journal Entry With
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two Assets. one is going to be
positive. so thats going to be the debit
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side. and then another Asset is going to be
negative. that's going to the Credit side
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It kind of threw me off before.
You can have a Journal Entry With 2 Assets
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that's fine, you just have to have
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a Debit and Credit. and we're already at
like three minutes, so let me just do
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this one.
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ok, you buy a desk for $500
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alright, so i always like to do my cash
first
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so, five hundred dollars cash, now that's
an asset right????
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cash is an asset. ok, and you bought it
for five hundred dollars, so that's
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leaving, so positive side Asset over here
is debit, so it's leaving, so that's going
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to be a credit, because it's negative
cash, so this is this is positive
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Debits positive, the Credits going
to be a negative asset over here, right??
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so, that's going to be the credit, going to
have cash
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500
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Sorry, i think you put the Dollar amount first when doing a Journal Entry
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You write a Journal Entry like this
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the Dollar amount first but that's gonna be our
credit. now, what are we getting ???
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We are buying a desk. so we're getting, we're
getting, an Asset that's a desk so you're
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going to have the the positive over here,
because it's a, we're going to debit the
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asset, that's going to be a $500
desk over there, so you see that we have.
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these are both Assets, and ones you know
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cash is leaving, so we have a negative
Asset, and we have a positive Asset, but
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the Journal Entry is of 1 category, is
an asset, so and of course that will
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match for our Account Equation, because
you get more of one asset, and less of
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one asset, so and go i'm going to do Accounting
Equation:
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Asset = Liabilities + Equity is the
Accounting Equation. that's the Balance
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Sheet
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this is the Income Statement
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anyways we are six minutes in, I wanted
to do this fast, but anyways, just wanted to
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reiterate, the Debits are always
going to equal the credits, always, always,
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always, always, always, and you can have 20,
a lot of times you
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have a lot of expenses 20 Debits
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1 Credit, or vice versa, but they're
always going to equal, but i want you
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to also know, that it doesn't matter if you
know this journal entries is comprised of
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assets, that's it, and you know the
DC/ADE/LER which i always
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do, DC/ADE/LER that's the positive
sides, so you know, so like in this
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example the cash asset is leaving, so
that's a negative, that's a credit,
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if anybody likes these
examples, you know, i'll just do, maybe
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some examples, and we can go over them and
stuff, but I anyways, you a great day !!!!!!
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