Enjoyed this video about contra accounts? Then subscribe to the channel, and watch my contra account example on accumulated depreciation next: ua-cam.com/video/iOdEVUS2_fc/v-deo.html
Yes! Even though it only covers downward revaluation (the most painful direction) as the video covers asset impairment ua-cam.com/video/lWMDdtHF4ZU/v-deo.html
Would please tell me the story of over accruals please , i am asking because you are the only storyteller who was able to make understand the meaning of contra accounts . thanks sir
Hello Imad! Sure! In my video on adjusting entries, I cover accrued expenses in the second half of the video: ua-cam.com/video/57CST6_RtWk/v-deo.html The example I use there is an accrual journal entry in December for expected accounting fees (costs incurred, but invoice not received yet): debit accounting fees (income statement) $2,000 credit accrued expenses (balance sheet) $2,000. An overaccrual is when you have accrued too much, put too much money aside. So in this example, when you receive the invoice for accounting fees in January, it turns out you only get billed $1,800 in total. The journal entry in January is debit accrued expenses $2,000 credit accounts payable $1,800 and credit accounting fees $200. You "release" the accrual when the actual invoice comes in. Does that make sense?
@@TheFinanceStoryteller perfect sense , OMG you are the best , i am planning Engineer , i am studying accounting through your chanel ..... i feel very comfortable with Finance , thanks to you . one last thing that DC ADE LER is brilliant
Good idea, maybe I will put a playlist together with the name "CFA". I think quite a few of the videos on my channel could be helpful for CFA students, would you agree?
@@TheFinanceStoryteller Yes definitely, I am preparing for my Level 1 and keep watching your videos for explanation. A separate playlist would be very helpful indeed! Thank you!
Thanks for the video, I've one question: if the account "allowance for uncollectible accounts" has a value of -3600 on the asset side of the balance sheet, can this be interpreted as a balance of +3600 in allowance account?
Hello Peter! I cover this in my video on bad debt accounting ua-cam.com/video/q7Whr_A4drE/v-deo.html I personally try to avoid plus or minus confusion in these discussions. I think what you are trying to say is (extension of your example): Gross receivables 10000 Allowance for uncollectible accounts (3600) this is a contra-asset account Net receivables 6400 What this means is that there are invoices inside the gross receivables balance (a debit balance) which are partially or fully assumed to be uncollectable, and whose value on the balance sheet is offset by the allowance balance sheet account (a credit balance).
In an income statement's "natural state" Wouldn't expenses be credit (money owed, debt, payroll etc ) with revnue being being debit (money paid to and owed to the business for services and sales) ? The example seems backwards for the income "natural state"
@The Finance Storyteller can you please tell me what Posting Errors, Omissions, Errors of Original Entry & Casting Errors are and how to know if something should go into a Control A/C or Schedule of Debtors ( I know the adjustments areas of the four types of errors but I can’t define them )
Hi! Bad debt expense in the income statement is an expense account. Allowance for doubtful debt on the balance sheet is a contra account. See my video on bad debt accounting to learn more: ua-cam.com/video/q7Whr_A4drE/v-deo.html
Hi Ravi. I think you should watch the video again. It covers contra asset accounts, contra liabilities accounts, contra equity accounts, contra expense accounts, and contra revenue accounts. Each contra account is paired with an "original". Example: the contra-asset account "Allowance for doubtful debt" is paired with the asset account "Accounts receivable (gross value)".
@@TheFinanceStoryteller I have watched the whole video and I know how it's used to setoff , but I need to know is it considered as a asset or liability when it's credited(first) and debited(later), hope u get my point.
Hello Ravi. Not sure I understand your question. At the risk of going round in circles... a contra asset account is a contra asset account, not an asset and not a liability.
This video is part of the "basics of accounting" series, and is best viewed together with "debits and credits explained" ua-cam.com/video/n-lCd3TZA8M/v-deo.html and "accounting equation explained" ua-cam.com/video/OYql7Y9NnBg/v-deo.html
Enjoyed this video about contra accounts? Then subscribe to the channel, and watch my contra account example on accumulated depreciation next: ua-cam.com/video/iOdEVUS2_fc/v-deo.html
I finally got a good teacher for accounts.. Thanks sir..
Welcome! Hope you find a lot of useful videos on the Finance Storyteller channel.
Precise and to the point!!👍🏻Thanks a bunch!
Glad it was helpful! :-)
May the universe bless u man. Demn short n easy
Thank you, my friend! :-)
@@TheFinanceStoryteller if i may ask do u also have a video on revaluation of assets
Yes! Even though it only covers downward revaluation (the most painful direction) as the video covers asset impairment ua-cam.com/video/lWMDdtHF4ZU/v-deo.html
Loved this video on Contra Accounts! Thank you for creating this video. It's was extremely helpful. Well done!
Thank you, Jason! Nice to hear that.
THIS is an awesome video! So well explained. Thank you!
Happy to help!
Finally, I understand. thank you so much
Glad it helped!
love how you still reacting to all comments!!❤
For sure!!! If viewers take the time and effort to comment, I will respond. 😊
Fantastic! Quick and easy to understand. Thank you.
Glad it was helpful! Yes, I do like go straight to the point. 😊
thankyou so much! I came across contra payables, which I have to credit in receivables 😊
amazing explanation👍
Thank you 🙂
Love it, short and too the point
Thank you! Yeah, let's get to the essence and then move to the next topic. :-)
Thanks for making this video!
Happy to help!
thanks for this. Short and to the point
You're welcome! Gas op de plank!!!! :-)
@@TheFinanceStoryteller haha precies!!
Excellent! Very very helpful.
Glad to hear it, Harlan! Thank you for watching and commenting.
Nice thank you so much
Happy to help!
better than my professors
Thank you for the kind words! Please share with fellow students. 😊
Thank you so much sir.
Happy to help!
Would please tell me the story of over accruals please , i am asking because you are the only storyteller who was able to make understand the meaning of contra accounts .
thanks sir
Hello Imad! Sure! In my video on adjusting entries, I cover accrued expenses in the second half of the video: ua-cam.com/video/57CST6_RtWk/v-deo.html The example I use there is an accrual journal entry in December for expected accounting fees (costs incurred, but invoice not received yet): debit accounting fees (income statement) $2,000 credit accrued expenses (balance sheet) $2,000. An overaccrual is when you have accrued too much, put too much money aside. So in this example, when you receive the invoice for accounting fees in January, it turns out you only get billed $1,800 in total. The journal entry in January is debit accrued expenses $2,000 credit accounts payable $1,800 and credit accounting fees $200. You "release" the accrual when the actual invoice comes in. Does that make sense?
@@TheFinanceStoryteller perfect sense , OMG you are the best , i am planning Engineer , i am studying accounting through your chanel ..... i feel very comfortable with Finance , thanks to you .
one last thing that DC ADE LER is brilliant
@@TheYasmin3 That is so great to hear! Happy to help, my friend! Please spread the word to friends and colleagues.
Thank you
You're welcome! :-)
big help sir thank you
Great to hear that! Happy to help.
helped me a lot.
Great to hear that, Kawsar! Thank you for watching!
thank you so much
You're welcome! Nice to hear that you enjoyed it.
Gracias!
De nada! 😊
Thanks ❤
Happy to help!
Why don't you start making videos on the CFA curriculum?
Good idea, maybe I will put a playlist together with the name "CFA". I think quite a few of the videos on my channel could be helpful for CFA students, would you agree?
@@TheFinanceStoryteller Yes definitely, I am preparing for my Level 1 and keep watching your videos for explanation. A separate playlist would be very helpful indeed! Thank you!
Thanks.
You're welcome
Thanks for the video, I've one question: if the account "allowance for uncollectible accounts" has a value of -3600 on the asset side of the balance sheet, can this be interpreted as a balance of +3600 in allowance account?
Hello Peter! I cover this in my video on bad debt accounting ua-cam.com/video/q7Whr_A4drE/v-deo.html I personally try to avoid plus or minus confusion in these discussions. I think what you are trying to say is (extension of your example):
Gross receivables 10000
Allowance for uncollectible accounts (3600) this is a contra-asset account
Net receivables 6400
What this means is that there are invoices inside the gross receivables balance (a debit balance) which are partially or fully assumed to be uncollectable, and whose value on the balance sheet is offset by the allowance balance sheet account (a credit balance).
great video. Thank you
Nice to hear that! Thank you for watching and commenting!
Helpfull video 👏👌
Glad to hear that, Maira! Thank you.
In an income statement's "natural state" Wouldn't expenses be credit (money owed, debt, payroll etc ) with revnue being being debit (money paid to and owed to the business for services and sales) ?
The example seems backwards for the income "natural state"
Nope. It's the other way around. See my video on debits and credits explained, and its related videos: ua-cam.com/video/n-lCd3TZA8M/v-deo.html
Nice
Thanks
This video is vary halpful for me.
#.Bangladesh
Great to hear that! Happy to help.
Great video
:-) Thank you!
@The Finance Storyteller can you please tell me what Posting Errors, Omissions, Errors of Original Entry & Casting Errors are and how to know if something should go into a Control A/C or Schedule of Debtors ( I know the adjustments areas of the four types of errors but I can’t define them )
Hi Aroush! I don't know the answer to all of that off the top of my head, and I assume your search engine skills are of the same level as mine.
Is Bad Debt A/C a contra account?? Why/why not????
Hi! Bad debt expense in the income statement is an expense account. Allowance for doubtful debt on the balance sheet is a contra account. See my video on bad debt accounting to learn more: ua-cam.com/video/q7Whr_A4drE/v-deo.html
@@TheFinanceStoryteller thanks so much for helping me out! 💙your videos are really cool btw
@@ishita6687 Great to hear that! Thank you for watching and commenting.
thanks
You're welcome, Hashim!
I got it but y do we credit it in the first place (is it asset or liability)
Hi Ravi. I think you should watch the video again. It covers contra asset accounts, contra liabilities accounts, contra equity accounts, contra expense accounts, and contra revenue accounts. Each contra account is paired with an "original". Example: the contra-asset account "Allowance for doubtful debt" is paired with the asset account "Accounts receivable (gross value)".
@@TheFinanceStoryteller I have watched the whole video and I know how it's used to setoff , but I need to know is it considered as a asset or liability when it's credited(first) and debited(later), hope u get my point.
Hello Ravi. Not sure I understand your question. At the risk of going round in circles... a contra asset account is a contra asset account, not an asset and not a liability.
Now explain it to me like Im 10 years old
This video is part of the "basics of accounting" series, and is best viewed together with "debits and credits explained" ua-cam.com/video/n-lCd3TZA8M/v-deo.html and "accounting equation explained" ua-cam.com/video/OYql7Y9NnBg/v-deo.html
Thank you
Thank you
You're welcome!
Thank you.
You're welcome!