How to record a journal entry the EASY way!
Вставка
- Опубліковано 14 чер 2024
- Join 10,000+ professionals who enrolled in the Controller Academy 🚀
controller-academy.com/course...
[coupon 30OFFCOURSE for 30% discount]
Or
Get my Controller bundle, which includes the Controller Academy
controller-academy.com/bundle...
[coupon 30OFFCOURSE for 30% discount]
How to record a journal entry in a way that's easy to remember. I will walk you 3 steps to record any business transaction.
Free Download of My Balance Sheet Metrics Cheat Sheet:
thefincontroller.com/p/the-fi...
Hang Out with me on social media:
JOIN MY FACEBOOK GROUP HERE:
🙋🏼♂️ groups/78073...
FOLLOW ME ON INSTAGRAM:
📸 / the_financial_controller
I have been a bookkeeper on and off for 30 years, so I understand what to do for journal entries. Still, the whole "debit/credit" language always confused me. That is until today! I found this video for an assignment to look for tricks to help with a journal entry. The up and down, action = reaction did it for me. I now understand why spending cash is recorded as a credit! Thank you.
One of the best accounting channels that I actually have the patience to listen to and can understand the logic behind accounting rules. Well done!
This is the best description I've seen so far. It's very helpful, and I'm currently using it for a homework assignment.
This has been my favorite accounting channel, currently working on my Bachelors and been stressing about not being able to know/memorize everything… so you saying that it’s okay and can even google a question helps relieve my stress!
This is by far the best way to remember. I wish I would have had a professor to explain it like this when I was in school, but I graduated in accounting/finance. Thanks for explaining this concept well.
Thank you for this video and all others you have created. This has truly helped me. I can understand everything and you give great examples.
I have watched so many videos on journal entries to understand it. After watching this I get it, the "Action=Reaction to every business transaction" 🙏Thank you so much.
You got me! I'm definitely subscribing!!! Thanks for all the help.
you’re a great teacher, thank you so much!
Brilliant! You are truly gifted in teaching. Well done.
Glad you think so!
Love your channel.much appreciation ❤️
This video was very helpful. I'm in the first semester of my MBA program with accounting being one of my classes and until I saw the acronym DEALER just now I could not grasp the concept of what to debit and what to credit. THANK YOU so much for this!!!
You're going to hate your life once you get that cushy accounting job. You're gonna be miserable.
You are absolutely the best!
Wooow Action and Reaction and DEALER really helped me. And to know that thinking through it does not make you look stupid is a bonus. Thank you soooo much for your tips
Haha thanks kibi
You are awesome, thanks for take the time to created this videos. I am learning a lot from you
Thanks for watching
Acronym DEALER! Thank you!!! The best!!
Thanks Bill, I missed this video 🤭 Thanks for another brilliant explanation. DEALER is a much easier way to remember my Dr/Cr.
Thanks for watching
boss i love the way you teach....very simple method to understand....soar higher
Thanks!
This is so helpful. Thank you
Started Learning the Accounting 101. Its great help
Best explanation. Keep it up!
Beautifully depicted and spoken.
Thanks very much!
Gracias por la explicación tan didáctica. Es usted un maestro para enseñar.
best one I have seen yet for learning, or refresher
Thank you
Thank you so much for simplifying this complex topic. I have a test coming up Monday and i was stressed out but this helped 🙏
Im grateful. God bless you
Best of luck!
Thank you so much. This was a beneficial video.
Thanks alot. this is really helpful
Thank you, this video was very helpful 😊 please do more videos like this 🙏👍
Thanks, I will
I wish my teacher would have this patient rather than doing it in a boring way Thank you sir
I'm takig intermediate accounting and needed a quick refresher. Thanks a lot!
You're very welcome!
Thank you so much!
Thanks Sir
It is a big help❤️
Great knowledge shared with us
Thanks and regards
May God bless you
Thanks so much for the tutorial🙏🙏
Thanks for watching!
Thank you👏🏼👏🏼👏🏼
you did a great job sir. I could not understand easily while studying my B.COM Graduation but you make me to understand its very easily..
Glad to hear that
Perfect.🎉
Thank you so much
Great breakdown of accounting rationale for journal entries. If you understand DEALER and can grasp accruals and deferrals, you can think your way through 95% of transactions for journal entry. Btw love the connection to Newtonian mechanics ( I’m a BioE major 😎)
Glad it was helpful!
New subscriber here! I love your channel.
Thanks for subbing!
This is a precious 9 minutes of learning, compared to credits I’m taking in uni 🥲thank you for making this video sir, looking forward for another updatess! #autosubscribed
Thanks Angel please check back in
@@TheFinancialController I want to get admitted in CPA .cannu guide me plz
@@jaan4khalid Get into another field.
Tq for the video
Perfect!!
You may have just saved my Accounting 1 grade.
Thanks 😊
You're welcome 😊
thanks!
Thank you for this video! Having the explanation for the action=reaction is very helpful. I am wondering however, why is it Dr and Cr? It seems like Cr would be short for credit but why is it Dr? Thank you again for your time!
Thank you!!
Curious, I tend to overexplain stuff so I want to be more concise in my entries. What’s a good method for recording the nature of the transaction?
For example, say I own a golf shop and a customer paid for lessons half in cash and half on account for 10 day credit terms.
Would my wording say something like, ‘customer paid for lessons on account and in cash’
Or does it make more sense to say ‘customer x paid for lessons’ as we can already see which accounts are affected?
Thank you for any help!
Great video.
I'm studying for FAR and I've been having the worst time with the journal entries for changes in fair value of AFS investments. Particularly because we're dealing with valuation accounts and and contra asset accounts. Is there a way to fit in those types of accounts into the DEALER mnemonic?
Hi Bill Hanna, I would truly appreciate if you made a video on the job marketability of accountancy professional qualfications such as ACCA, CMA etc. Thank you.
This is exactly i was looking for . 9 mins but so helpful . some people are taking more than 50 minutes but i failed to understand
Thanks African life..
Well understood
Thanks for watching:)
wow, Thankyou sir.
You are welcome!
nice vid :)
I like the acronym? :) and the action and reaction ,though I am still confuse how to debit and credit.
Can you offer advise how to go from being a senior accounts payable specialist to accounts payable supervisor?
Hello could you please explain about consolidation entries, Business combination valuation entire
So any of the abbreviated accts = DEALER can be be crossed over as Debit or Credit depending on the transaction right ??
The "Dealer" system is a bit confusing to me. In Italy we analyze each transaction in its two aspects: economic (is it a cost or a revenue) and/or financial (credit or debt). These two categories work in an opposite way so, if economic is positive it goes to the right (credit ), negative goes to the left. On the other hand, financial accounts follow the opposite rule: positive to the left, negative to the right. Anyway, thank you, really helpful to understand the "English way"
I hear DEALER a lot however I was always taught to know the acronym DEAD. Debit Expenses Assets and Dividends. Everything else has a natural credit balance.
explained it better than my professors
very nice and informative video. simple, full of knowledge. no dramatic b*llsh*t. 👍👍
Glad it helped
Office supplies can be considered as an expense? Or only as an Asset .
I'm wondering why none of my professors mentioned the dealer acronym, that would have made it so much easier to conceptualize. Thanks I'll keep that handy.
My high school teacher used to say DR the receiver and CR the giver. For example, in scenario 2, salary is receiving, and cash is giving, therefore, we DR salary and CR cash.
Yea, it's one of the golden rules of accounting (personal accounting rules: debit the receiver credit the giver)
The best part this video is when he tells us it’s okay to think your way through it and take your time-this speaks volumes coming from a controller!
Thanks, yes, no shame in that!
How about recording a business loan?
Would it be a dr to cash and a cr to notes payable?
Correct!
what would be the best entry if invoice was not receive for a year?
Great video. However, isn’t office supplies an expense that hits the P&L and not an asset on the balance sheet?
Hi. In general, supplies are considered a current asset until the point at which they're used. Once supplies are used, they are converted to an expense.
@@TheFinancialController Most companies don't capitalize office supplies and instead expense it as its expected to be consumed in a short period of time and also the de minimis nature of the costs.
What do you mean when you say assets have a debit nature? Sounds backwards to me every time i hear about what gets credited and debited. But no one ever explains that.
And it seems backwards to credit cash when you paid a salary in your example.
Can you make a video of general journal
Wait so an expense is basically a current asset yes? Because when you think about it, an employee is an asset to a company...
And an asset is an object that will bring future benefits to tge company... like purchasing a printer for the office...
Please I'd like to understand the difference between Journal entry and Book keeping? Thank you
...there is also ledger and trial of balance, so many title
Can you go over the chart of accounts of different industries for classifying expenses for accounts payable? Example: like raw material freight in expense is classified as inventory, but what about freight out for a manufacturer? Still inventory? A retailer? Selling expense? Sometimes signs are classified as signage, but other times it is classified as supplies, advertising, building improvement or building maintenance.. Building a ramp for the disabled customers is supply or building maintenance, how about a ramp for disabled employees? Is there a difference between accrued telephone, telephone, communication account titles and if so, does it depend on the industry. A fence around an apartment complex is land improvement, but what about the security gate or the fence around the pool (a legal requirement) for safety and to keep non-residence out. What is coaching expense for a real estate agent? The repaving of parking lots? Capitalized to land (cannot be depreciated) or land improvement or building repair? Etc...
Did u get answer?
What are bill payments. Like accounting or legal fees... considered to be?
Is it a service you're paying for? You're taking from your equity to gain an expense.
this makes sense, but I just started accounting in real life and we work with so many accounts that are not easy to know on which side of the balance sheet they belong.
Try to watch videos on UA-cam to learn
What is ledger?
Wow
❤❤❤
how to deal with credit transaction in journal entries?
Account receivable credit
Purchase debit
And cash is a liability ?
Hi Sir-Please help me with this Journal Entry-Scenario is-My Company's Rent for year 2020 is $120,000/-.I received the invoice from Real Estate on 5th Jan 2020.But I will be paying the entire $120k only on 10 of April-2020.Can someone help me with the complete journal
When you received the invoice the journal entry would be: RENT A/C DR 120k
OUTSANDING RENT A/C CR 120k
When you pay it then the journal entry would be
OUTSTANDING RENT A/D DR 120k
CASH A/C CR. 120,000
@@mish2978 Thanks Sir.But when the Invoice is received how would you Debit the Rent A/c as we have just received the Invoice and $120k is not an expense for that month.Please let me know if I am wrong.
DR Prepaid Expense- Rent 120K
CR Accounts payable/Cash 120K
And then each month you amortize the rent (spread the rent expense through out the year) DR Rent Expense 10,000 (1 month rent)
CR Prepaid Exp-Rent 10,000
What if.
Dr. Tan opened his dental clinic on January 2 and invested the following:
Cash. 50,000
Dental equipment. 100,000
Office equipment. 20,000
Office furniture. 40,000.
Help pleaseee. I can't make my journal entry because of this😭😭
Everything is debit
Capital account credit
🙏❤❤🙏❤❤
Mind blowing! This is not taught in school. Booo
Thanks!
DEALER!
Property dealer 🤪
another acronym is DEAD CLIC (Debit Expenditure-Assets-Drawings / Credit Liabilities- Income- Capital)
Good one!
That 'DEALER' stuff is misleading. Journal entries should be recorded using basic, direct rules of debit and credit. I don't like cutting corners.
Acronym to rote learning
English is not your first language. Where are you originally from?
He looks like he hates his job. Just look at the bags under his eyes.