Accounting For Beginners #2BasicsAccounting EquationAccounting Tutorial

What's good YouTube Jonathan Dorn CPA, licensed CPA in the
state of Florida this is basic accounting tips part 2
let's get this shit in if you missed part one go to the
homepage CPA Strength and watch that one first because this one Won't  make as much
sense so anyways now i'm going do to this in all  my,
basic accounting tips from now on we're going to go D   C    Debit / Credit                                     ADE      LER. Now i'm a CPA and I
still do this, you can do this in the first day of accounting class DC/ADE/LER
Debit/Credit Asset Draw Expense Liabilities Equity Revenue DC/ADE/LER. Alright so now every time you do a
journal entry you are going to have at least one Debit
and at least one Credit every time you input something into the books your
gonna have at least one Debit at least one Credit,  you might have 20 Debits a lot of
times you'll have 20 or 30 Expenses and money coming out of the bank over here
so you might have twenty-twenty Debits one Credit and no matter how many
different entries you have on each side it's always always going to be equal always always always always always
equals  a lot of accounting software won't let you leave the page or
whatever if the Debits don't equal the Credits, so that's a that's a steadfast
rule take that one to the bank TELL YOUR MAMA, it's always going to
happen so now you're just gonna have to remember
that Debit is always on the left always always always,  Credit is always on
the right,  now one is not good / one is  not bad see I i got confused for,  i'll be honest
about two years of my accounting career because I
thought Debit I was confused because,  I thought
Asset is good right ??? Right,  so I thought okay Debit  is good
but then Revenues is  good money is  good incoming money's good and so I thought
Credit is  good so you know that's totally wrong the way to think about this is you know
neither good or bad just is neither good or bad ok now, these are these are
positive these are these are positive sides so if
you have if you have a positive asset if you have money coming in that's a Debit if you have a negative
Asset it's a credit so these are all positive
sides positive positive positive you'll you'll
see where that comes in later because you can have an Asset if there is an
asset leaving if there's money leaving it will be it will be a Credit so anyways so these
are positive sides DC/ADE/LER. All right now you might ask what is you
know what where are these??   I'll keep it i'll just
try to keep it simple and brief for now now the most most common most common
Asset is the most common Asset is cash okay but you
can also but you also have accounts receivable,  inventory,  equipment, equipment,
buildings so that's Assets but let's focus on cash
cash is the most common in a lot of entries especially in the beginning you
know in the beginning you want to know what to do with cash i'll help you so
those the Assets.

A Draw is when, say when an owner this can also be owner's Equity you
might see this owner's Equity but anyways
when the owner cuts the check to himself it's a Draw or if it's or if it's a
business and it might be a out if it's a corporation it could be a Distribution or Dividend
so and it's almost the other side of Equity so DISTRA. BUTION is the Draw.  Expenses uh you know
something you spend in the hopes of making some money for your for your
business or whatnot we will  say rent utilities you know, and such and such and such
telephone,  internet, telly , internet alright so now these are all positive
positive Debits: ADE   DC/ADE. Now let's go with LER  Liabilities these are going to be  accounts payable what do you owe somebody wages payable
now almost every Liability is a Payable except unearned Revenue,  so if you see a
payable it's a Liability so the
owner's Equity you're not really going to mess with it
too much, it's mostly the retained just say it's retained earnings you know what is have it at retained
earnings we'll get into that later, but for now
just the owner's Equity that's how much you have in the business you know the owner's Equity, the
equity, what you have in the business and also Revenue so that's, you make a sale you,
do service that's going to be Revenue,  so sales service you guys love my handwriting, that's a
lefty strength, I think it's August Thirteenth today, it's lefty
day, so any of you lefty's out there we are the only ones in our right mind I suck, anyways,  so let's get back to this
so that's DC/ADE/LER.

So you know kind of what they are all
now we're going to do some journal entries in the next in the next video I just want you to know watching this
one that,  Expenses and Revenue that's the Income Statement here this is
what's on the Income Statement now when, when  you file your
taxes at the end of the year you pretty much going to give your CPA
your Income Statement and you're going to give them the Balance Sheet on the
Balance Sheets the biggest the biggest thing that's right you might have heard of it a lot you
know Balance Sheet carries over you from year to year and the Balance Sheet is
the Basic Accounting Equation which is Assets = Liabilities + Equity
and what we'll go over that of course later it's going to show you that
the DC/ADE/LER. It just works because you have your
Income Statement right here and then you also have your Balance Sheet see Assets
equals  Liabilities plus Equity so there's your Balance Sheet and that the
Draw is basically the other side of that what are you so it can kind of be
included in there anyways that's that's part 2 and I'm obviously not a teacher I just I struggled for years actually
had an accounting degree didn't really have a full grasp of this i freakin
struggled and I learned this I learned DC/ADE/LER  and once
i started writing this down every time and referring to allows to in journal
entries and problems I it just the light bulb went off side I just I feel like I need to share
people to people who struggle you don't need T - accounts with this
this this is kind of a t-account this is all you'll ever need DC/ADE/LER  really. Anyways you if you
Liked the video. Give a thumbs up.

Give me a Like.  Subscribe to the channel I'm going to have a whole bunch of stuff
CPA Strength I love being a CPA and strength because
i'm going to be the strongest see our strongest CPA in America. And I'm hella
addicted to working out, so deuces.