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!
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.
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
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.
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.
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...
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!
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 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😭😭
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.
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!!!
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
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"
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
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...
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.
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.
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!
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.
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.
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 😎)
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.
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
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 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 the best description I've seen so far. It's very helpful, and I'm currently using it for a homework assignment.
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.
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
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!
You are awesome, thanks for take the time to created this videos. I am learning a lot from you
Thanks for watching
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.
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
You got me! I'm definitely subscribing!!! Thanks for all the help.
Started Learning the Accounting 101. Its great help
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..
best one I have seen yet for learning, or refresher
Thank you
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.
Gracias por la explicación tan didáctica. Es usted un maestro para enseñar.
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.
Tq for the video
You are absolutely the best!
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...
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!
Thanks so much for the tutorial🙏🙏
Thanks for watching!
Best explanation. Keep it up!
Great knowledge shared with us
Thanks and regards
May God bless you
Perfect.🎉
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!
what would be the best entry if invoice was not receive for a year?
How about recording a business loan?
Would it be a dr to cash and a cr to notes payable?
Correct!
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.
explained it better than my professors
So any of the abbreviated accts = DEALER can be be crossed over as Debit or Credit depending on the transaction right ??
It was nice
Thank you so much
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
Perfect!!
nice vid :)
thanks!
What is ledger?
wow, Thankyou sir.
You are welcome!
And cash is a liability ?
how to deal with credit transaction in journal entries?
Account receivable credit
Purchase debit
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!
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
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.
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.
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.
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"
Thank you, this video was very helpful 😊 please do more videos like this 🙏👍
Thanks, I will
Love your channel.much appreciation ❤️
Brilliant! You are truly gifted in teaching. Well done.
Glad you think so!
another acronym is DEAD CLIC (Debit Expenditure-Assets-Drawings / Credit Liabilities- Income- Capital)
Good one!
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
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 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.
I like the acronym? :) and the action and reaction ,though I am still confuse how to debit and credit.
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 TH-cam to learn
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!
Beautifully depicted and spoken.
Thanks very much!
thank you so much! you re awesome.
You're welcome!
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
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.
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.
I wish my teacher would have this patient rather than doing it in a boring way Thank you sir
Acronym DEALER! Thank you!!! The best!!
Office supplies can be considered as an expense? Or only as an Asset .
English is not your first language. Where are you originally from?
Thank you so much. This was a beneficial video.
He looks like he hates his job. Just look at the bags under his eyes.
Thanks alot. this is really helpful
Can you make a video of general journal
This is so helpful. Thank you
Thank you👏🏼👏🏼👏🏼
you’re a great teacher, thank you so much!
Thanks Sir
It is a big help❤️
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!
Wow
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)
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!
🙏❤❤🙏❤❤
very nice and informative video. simple, full of knowledge. no dramatic b*llsh*t. 👍👍
Glad it helped
You may have just saved my Accounting 1 grade.
Thanks 😊
You're welcome 😊
Well understood
Thanks for watching:)
DEALER!
Property dealer 🤪
Increase in equity is credit, not debit and💀 😂✌
I'm takig intermediate accounting and needed a quick refresher. Thanks a lot!
You're very welcome!