@@andytoss8063 i understand that from my comment you could think that im a spoiled kid who doesnt appreciate that he can go to university. Honestly if i read the comment i mightve thought exactly the same thing. But my university really has quite the pride issue. Its a university that has a pretty good reputation (not worldwide but in germany) and i feel like they kinda try to convince you that theyre really a difficult university to graduate from (graduation rate is below 40% for business administration which is quite unusual). In class this manifests itself by explaining stuff in a overcomplicated way, which can be helpful for understanding the relations between the diffrent concepts we learn after a couple of semesters, but not at the start. This is especially true with math, but accounting is affected by it too. It feels like theyve created a culture that rewards making things very difficult for students. And with a university that has such a great reputation (bla bla) i feel like not being able to explain double entry bookkeeping in 6 hours is embarrassing to say the least. I think i dont really have the right to be set off by this, because afterall the government pays for our education (id be really pissed if i lived in america tho)
Thanks for the explanation. I was really struggling with Debit vs Credit. For some reason my mind wants to think of credit as a positive instead of a debt. This cleared things up.
I spent 4hrs yesterday trying to get my head around how to record such things for my 1st intro to accounting tutorial. With help from a friend i managed to work it out but i was still confused with the Cr and Dr. I watched this after my lect and tute and it made much more sense. Wish I found this yesterday!! Thank you for your clarity
This video is fantastic!! So refreshing to here a video where someone take this time to explain without being dry and dull!! Great stuff show them how its done!
Always understood the basic principal but never could get my head around the rules. Your explanation is excellent! Will have to revisit a few times to get it cemented but thank you so much 🙏
Thank you, Daniel. I am not an accounts student, and have never studied accounts but I needed this as I need to study solicitors' accounts which I wasnt too thrilled about. But you made this bearable and understandable. Thank you!!
THANK YOY SO MUCH MAN I JUST STARTED YEAR 10 ACCOUNTING AND WAS KINDA LATE TO MY CLASSES BECAUSE I SWITCHED FROM PHYSICS TO ACCOUNTING AND UR VIDEO HELPED ME A TON BECAUSE I COULDNT UNDERSTAND STUFF IN MY CLASS AT ALL THANK YOU SO F'ING MUCH LOVE U DUD
Good explanation! Would've made sense to show the closing balance after the three transactions (sum of debit and credit are balanced) - as this is the whole purpose of the double entry system
You are a natural. Thank you. I am thinking of starting with aat level 2 and was looking around to see if I would like it or if I understood. It all seemed so complicated until just now when I saw your video. Your way of explaining, omg I haven't started studying, and I understood every piece of information. You are great! 👍🏻
Thank you so so so much! I’ve been racking my brains for ages trying to understand this in depth. Your explanations are so clear and the layout of the business example you gave made so much more sense than the way I’ve been taught. Thank you!
Ah... thank you for being so clear.... I must confess, that although I now know where to put what.... it still doesn’t make logical sense to me....using the word ‘credit’ to take something out... or debit an account to increase it....but at least I know where to put things... even if I don’t fully grasp it 😬 monkey see, monkey do.
🎯 Key Takeaways for quick navigation: 00:00 📚 *The accounting equation: Resources in the business = Capital (resources supplied by the owner) + Liabilities.* 01:18 💰 *Assets (e.g., fixtures, fittings) = Capital + Liabilities (amount owed to others). The accounting equation must always balance.* 02:35 📝 *Double entry bookkeeping uses T accounts with debit (left) and credit (right) sides. Every transaction impacts two areas, and the equation must still balance.* 03:59 📊 *Ledger accounts record transactions, each with a date, details, and financial amount. Debit one account, credit another - ensuring the equation balance.* 05:47 🔄 *Rules for debiting and crediting: Increase in assets or capital is debited; decrease is credited. Increase in liabilities is credited; decrease is debited.* 06:53 🔄 *"Debit the receiver, credit the giver" rule helps decide which account to debit or credit in transactions.* 07:49 📈 *Example transactions: Business receives 100,000, recorded as debit to bank and credit to capital.* 08:58 🏢 *Purchase of premises for 70,000 recorded as credit to bank (decrease) and debit to premises account (increase).* 09:51 📦 *Purchase of goods on credit (liability) for 12,000 recorded as debit to purchase account and credit to Adrian's account.* 11:02 🔄 *For every transaction, there must be a corresponding debit and credit to maintain the balance in the accounting equation.* Made with HARPA AI
Dear Daniel thank you so much for your wonderful explanation! It is the best one that I've ever had, perfectly fits with my way of understanding. I was almost hopeless, I was thinking that something is wrong with me:) By reading the comments I realised I'm not the only one. Thank you, guys & good luck to all of us:))
WTHHHHHH I UNDERSTAND NOWWWWW AND MY TEST IS TOMORROW LITTERALLY YOU TAUGHT ME WHAT. MY TEACHER TRIED TO TEACH MEE IN A SEMESTER!!!!!! THANKYOU SO SO MUCHHH
You explaned this debit/credit fantastically.... I saw various videos in You tube but your explanation was crisp and clear....... 👍👍👍👏👏👏 Hope I can do my assignments 😆
U r right... But this video was sent by my foreign friend n it's a new subject for me so I was searching for a Indian user comment cuz dummy me was thinking that every country has their own method for accountancy
Great video thanks! But, in the 3rd example, do you keep any note (say in the notes column) on the same book about the fact that at some point in the future, Adrain will need to be debited €12,000 and the Purchases account (or otherwise) will need to be credited €12,000, or does this get noted on an accounts payable book somewhere or something until the payment is made, at which point it would just be another transaction on the books?
Jarrod Mitra "why" would be to balance the books, have an audit trail, control your spending, work out what's more profitable, work out what might be a loss.
i assume you mean why do you do the opposite to the first payment. if you do mean that then it is because one person is getting money given to them which is debiting and as your bank is an asset, you decrease an asset with a credit so that is why you credit it when paying in cheque, cash etc. this is the same with liabilities but you increase that with credit because you dont have the money for it (which is what makes it a liability.) if i didnt explain this very well ask me a question about what you didnt understand and i will try to adjust it because its 6 in the morning and my mind is quite slow x)
this video is so good, you can explain a concept in 10 minutes which my university cant explain in 6+ hours
@@andytoss8063 i understand that from my comment you could think that im a spoiled kid who doesnt appreciate that he can go to university. Honestly if i read the comment i mightve thought exactly the same thing. But my university really has quite the pride issue. Its a university that has a pretty good reputation (not worldwide but in germany) and i feel like they kinda try to convince you that theyre really a difficult university to graduate from (graduation rate is below 40% for business administration which is quite unusual). In class this manifests itself by explaining stuff in a overcomplicated way, which can be helpful for understanding the relations between the diffrent concepts we learn after a couple of semesters, but not at the start. This is especially true with math, but accounting is affected by it too. It feels like theyve created a culture that rewards making things very difficult for students. And with a university that has such a great reputation (bla bla) i feel like not being able to explain double entry bookkeeping in 6 hours is embarrassing to say the least. I think i dont really have the right to be set off by this, because afterall the government pays for our education (id be really pissed if i lived in america tho)
Of Course. That's what Universities are good at.
no
Lol 😆
most lecturer are retired bankers etc etc ... they are good in their job but they can't seem to explain what they know to their students =/
You've basically explained what I couldn't understand my tutor explaining for the last 6 months. Thank you!
you should probably pay more attention to class
shut the fuck up
@@emiliospowerballer1441 shut the fuck up
@@emiliospowerballer1441 shut the fuck up
@@emiliospowerballer1441 shut the fuck up
You wonderful, bloody fantastic man!
Debit the receiver
Credit the Giver
This has changed my life
John Evans...tell me about it
@@zahraseraphina1664I struggled for ages with it. It didn't help that everyone tells you it's a really simple concept. Not any more :-)
@@johnevans8094 ur scenario is EXACTLY the same as mine
@@zahraseraphina1664 Me too!
For me I always think Credit&Debit=You get some&You lose some
Thanks for the explanation. I was really struggling with Debit vs Credit. For some reason my mind wants to think of credit as a positive instead of a debt. This cleared things up.
Glad you found it helpful
Thank you for this masterpiece. My job as an accountant is much easier now, and I don't have to pretend anymore =)
Glad I could help!
It's been 6 years since you uploaded this video. But seriously, this explains it so simply. Fantastic work.
I spent 4hrs yesterday trying to get my head around how to record such things for my 1st intro to accounting tutorial. With help from a friend i managed to work it out but i was still confused with the Cr and Dr. I watched this after my lect and tute and it made much more sense. Wish I found this yesterday!! Thank you for your clarity
Glad the video helped!
For the life of me I can't get this but I'll keep at it... Your making this so much more understandable... thank you.
Debit the receiver, and Credit the giver.
Fascinating explanation!
Debit the receiver
Credit the giver
YOU CHANGED MY LIFE!
I was struggling to get my head around this concept and in just 10 minutes I got it. Thank you so much!!
This is amazing , debit the receiver and credit the giver and now it all makes sense
I know we don't all learn the same way but some people really know how to explain things, this man has that talent.
As a Mechanical Engineer taking a professional course in financial accounting, this video saved me a whole lot of time. Really appreciate.
Thanks and you are welcome
Wowwwwww, this was so simplified. You changed the way i look at accounting. Its now simple thanks to you
Daniel King
This video is fantastic!! So refreshing to here a video where someone take this time to explain without being dry and dull!! Great stuff show them how its done!
Always understood the basic principal but never could get my head around the rules. Your explanation is excellent! Will have to revisit a few times to get it cemented but thank you so much 🙏
Glad it was helpful!
I learned more in this 10 min then in 12 weeks module . Thank you
You proved what a difference a GREAT teacher can make - thank you!
Wow, thank you!
Thank you, Daniel. I am not an accounts student, and have never studied accounts but I needed this as I need to study solicitors' accounts which I wasnt too thrilled about. But you made this bearable and understandable. Thank you!!
You're very welcome!
Thank you. This helps tremendously. I was finishing your sentences by the end of the video!
i have been trying to get this into my head for years thank you so much!
This is the most didactic tutorial on the whole internet about the double entry system. Thanks
air acha
Can’t believe this was posted 4 years ago yet it’s still helpful
Oh my god, you’ve just explained this so simply I’ve been pulling me hair out trying to understand this!! Thank you so much!
This is why all field personnel can summarize a situation fluidly
THANK YOY SO MUCH MAN I JUST STARTED YEAR 10 ACCOUNTING AND WAS KINDA LATE TO MY CLASSES BECAUSE I SWITCHED FROM PHYSICS TO ACCOUNTING AND UR VIDEO HELPED ME A TON BECAUSE I COULDNT UNDERSTAND STUFF IN MY CLASS AT ALL THANK YOU SO F'ING MUCH LOVE U DUD
Good explanation! Would've made sense to show the closing balance after the three transactions (sum of debit and credit are balanced) - as this is the whole purpose of the double entry system
This was the best video ive ever watched regarding Double Entry.
Thank you so much!
After 2 mnths of learning accounting in high school and not understanding it,this video finally helped me.Big thanks to you and I really love this💙
Thank you for this, I feel like crying I’ve been so stressed and I finally get it
I was never getting this in class until I saw this video thank you so much
Cheers, mate. Maybe I’ll pass tomorrows exam after all
Did you pass?
did you?
Didn't get an exam, but I understood the concept
same
Really help,found this at midnight just 8 hrs before my businesses fundamentals exam!!!!
understood the concept in 10 mins , which our's took almost 6 months and didn't understand a thing. thank you very much!!!
Please continue to help, appreciate
your efforts
I've watched so many videos online but this one is the best of them all.. Thank you!
Glad it was helpful!
A big thank you for sharing this knowledge in such a quick simple format
You're very welcome!
Sooooo!!!! good I was able to create a personal formula to remember it. thanks.
Excellent video. Succinct and easy to understand. Relevant examples too. Thank you
Thanks for this short but beneficial tutorial!
thank u for this, maybe ill have a chance to pass my test tomorrow
You are a natural. Thank you. I am thinking of starting with aat level 2 and was looking around to see if I would like it or if I understood. It all seemed so complicated until just now when I saw your video. Your way of explaining, omg I haven't started studying, and I understood every piece of information. You are great! 👍🏻
Thank you so so so much!
I’ve been racking my brains for ages trying to understand this in depth.
Your explanations are so clear and the layout of the business example you gave made so much more sense than the way I’ve been taught.
Thank you!
@the wandering lily Are you doing level 2 or 3?
This video was exactly what I needed to help me in my test. Thank you so much!☺❤
Thank you kind sir, starting to wrap my head around the concept. Not neccessarily as intuitive as I hoped hehe
I was suffering from not understanding these, but now I'm good at this 🙂☠️
This is the clearest explanation I have heard. Excellent video!
Thank you for taking the time to make this video. Helped me with studying for my diploma.
wacha upuus
Awesome thanks!. I paused and tried to get the right answer each time!
Excellent!
thanks man, your video made this lesson a lot easier for me
Glad it helped!
everybody here is from university, but i want to thank you from highschool! this was insanely helpful
Glad it was helpful!
Thanks was realy confused why all incomes to bank are debited now I understand the concept with the your simple rules,
Ah... thank you for being so clear.... I must confess, that although I now know where to put what.... it still doesn’t make logical sense to me....using the word ‘credit’ to take something out... or debit an account to increase it....but at least I know where to put things... even if I don’t fully grasp it 😬 monkey see, monkey do.
Thank you! You made this soooooooooooooo easy. God bless you!
Gr8 Video Daniel!! Your Irish sounding accent puts us Accounting phobes at ease! :)
Thank u very much, helped me a lot today in reviewing my tests, a thumbs up to u.
Glad it helped!
This video is so useful.. been doing accounts for 2 years now and I finally understand. Fantastic
shouldn't it be bothering? O_O
🎯 Key Takeaways for quick navigation:
00:00 📚 *The accounting equation: Resources in the business = Capital (resources supplied by the owner) + Liabilities.*
01:18 💰 *Assets (e.g., fixtures, fittings) = Capital + Liabilities (amount owed to others). The accounting equation must always balance.*
02:35 📝 *Double entry bookkeeping uses T accounts with debit (left) and credit (right) sides. Every transaction impacts two areas, and the equation must still balance.*
03:59 📊 *Ledger accounts record transactions, each with a date, details, and financial amount. Debit one account, credit another - ensuring the equation balance.*
05:47 🔄 *Rules for debiting and crediting: Increase in assets or capital is debited; decrease is credited. Increase in liabilities is credited; decrease is debited.*
06:53 🔄 *"Debit the receiver, credit the giver" rule helps decide which account to debit or credit in transactions.*
07:49 📈 *Example transactions: Business receives 100,000, recorded as debit to bank and credit to capital.*
08:58 🏢 *Purchase of premises for 70,000 recorded as credit to bank (decrease) and debit to premises account (increase).*
09:51 📦 *Purchase of goods on credit (liability) for 12,000 recorded as debit to purchase account and credit to Adrian's account.*
11:02 🔄 *For every transaction, there must be a corresponding debit and credit to maintain the balance in the accounting equation.*
Made with HARPA AI
Very helpful video, would be great if someone did the full A level Specification!
My lecturer spent 2h trying to explain this. They should have just put up this video omg
Thank you Daniel! Great explanation
Great Video ! I would suggest to add one slide with Balance Sheet situation at day 4 to show that equation is still valid...
This video is a great introduction to the topic.❤
i am a culinary student but youve opened up my mind honestly.
Great video. Thankyou for helping me explain this so simply
Congratulations for such a brilliant video!!!
Thanks but why did you record on both sides question two?
Love this I don’t usually comment on UA-cam but this is mind unbelievably understandable keep it up my geee❤️🔥❤️🔥❤️🔥❤️🔥❤️🔥❤️🔥💯💯❤️🔥💯💯
Appreciate that
Dear Daniel thank you so much for your wonderful explanation! It is the best one that I've ever had, perfectly fits with my way of understanding. I was almost hopeless, I was thinking that something is wrong with me:) By reading the comments I realised I'm not the only one. Thank you, guys & good luck to all of us:))
You're very welcome!
debit the receiver
credit the giver
it FINALLY makes sense! WHY DIDN'T MY TEXTBOOK EVER SAY THIS OH MY GOD THANK YOU!!!!!!!!!!!!!!!!!!
Thank You!
OMG! why had I not seen this earlier, its simple and clearly explained. fantastic
good explaination...even it is just 10 mins but you made it so clear to me.Thanks
@1:28 Capital is also a liability (google)
A liability is something a person or company owes to other entity.
Very well explained. Precise and short.
BEST TEACHER EVER BEST VIDEO EVER THANK YOU
This has helped, thank you. Xx
Glad it helped!
oh my god thank you so so much this makes so much sense now!
Glad it helped.
The comments are positive!
*Hope this works in my exammmmsss*
How did it go?
@@nafeh9574 I wonder
The Accounting Equation is
Assets = Liabilities (resources provided by third parties) plus owners' capital.
Exactly what I want thank uhh❤️
Thank you man u just made it very easy
Debit the receiver
Credit the Giver
Thank you
WTHHHHHH I UNDERSTAND NOWWWWW AND MY TEST IS TOMORROW LITTERALLY YOU TAUGHT ME WHAT. MY TEACHER TRIED TO TEACH MEE IN A SEMESTER!!!!!! THANKYOU SO SO MUCHHH
Glad the video helped!
Daniel King can you explain about traders and stuff like that if that makes any sense
Thank you so much for your help with double entery system
You explaned this debit/credit fantastically.... I saw various videos in You tube but your explanation was crisp and clear....... 👍👍👍👏👏👏
Hope I can do my assignments 😆
Glad it was helpful!
Thank God I'm not the only Indian here
@@cindyhyun8586 Don't know who is Indian, American or Chinese. We came here to learn debit/Credit and appreciate "Daniel" efforts.
U r right... But this video was sent by my foreign friend n it's a new subject for me so I was searching for a Indian user comment cuz dummy me was thinking that every country has their own method for accountancy
Thank you for really helpful and most didactic tutorial video.
Thank you so much for this video. Helped explain a lot
Thank you very much. This video was very informative
Thank u very much...very helpful.,from Malaysia
Thank you for this masterpiece I learned a lot so now I can pass that test this so easy to understand
Glad it was helpful!
Amazing...thanks do much, this what i have been looking for. God bless u
Glad it was helpful!
Debit the receiver and credit the giver.... I like that method it's perfect strategy😅👌👌
Yeah thanks
Very good and simple explanation. Why does most everyone (including myself) have such a hard time with this logic, at first?
Great video thanks! But, in the 3rd example, do you keep any note (say in the notes column) on the same book about the fact that at some point in the future, Adrain will need to be debited €12,000 and the Purchases account (or otherwise) will need to be credited €12,000, or does this get noted on an accounts payable book somewhere or something until the payment is made, at which point it would just be another transaction on the books?
Waooo this is amazing lecture I never ever watch thank uuu😘😘
You really are a good teacher
Every video I find on double entry explains ‘how’ but not ‘why’ it’s all back to front. 😔
Jarrod Mitra "why" would be to balance the books, have an audit trail, control your spending, work out what's more profitable, work out what might be a loss.
i assume you mean why do you do the opposite to the first payment. if you do mean that then it is because one person is getting money given to them which is debiting and as your bank is an asset, you decrease an asset with a credit so that is why you credit it when paying in cheque, cash etc. this is the same with liabilities but you increase that with credit because you dont have the money for it (which is what makes it a liability.) if i didnt explain this very well ask me a question about what you didnt understand and i will try to adjust it because its 6 in the morning and my mind is quite slow x)
@@sebb8347 i dont get the expression you said abotu liabilities alhough i get the idea 'increase that with credit' i dont get this
THANK YOU!! Finally understand.
Good explanation! Also, you sound like Jonny Depp from pirates of the Caribbean. Thank you!
Wow, thanks!
Thanks alot ur video really helped
Glad it helped