Enjoyed this video? Then please subscribe to the channel, and let's review debits and credits DC ADE LER in more detail th-cam.com/video/b93KBmcXanI/w-d-xo.html and/or learn more about preparing a trial balance th-cam.com/video/SpAwI_SSDHY/w-d-xo.html
Helpful tip - if you switch the letters around at 1:00 it spells out the acronym DEALER to help remember whats a debit and whats a credit. DEA on left (debits), LER on right (credits)
You're a lifesaver I got an exam a while ago about closing entries I knew nothing then after watching this vid it was pretty basic after all lol i got a 38/40
Wow! Well done! Congratulations. So happy to hear that. Hope you will find more useful information on my channel for future exams, here's the link to the playlist with intermediate accounting videos: th-cam.com/video/lBvnSgIGVnU/w-d-xo.html
That was AMAZING the way you broke this down was just amazing can't find any other word to describe it, straight to the point, simple, concise. Thank you I just subbed and will be binging all your videos for my accounting for decision making class!
Wonderful to hear that. Please share the link to the video and the channel with your fellow students, and have a look at the following playlists to see if there are any more videos that could help you: Accounting 101 th-cam.com/video/b93KBmcXanI/w-d-xo.html&pp=gAQBiAQB Intermediate accounting th-cam.com/video/lBvnSgIGVnU/w-d-xo.html&pp=gAQBiAQB
Just want to stop by your most recent video to let you know I’m binge watching most of them 😁 I’m in the middle of Intermediate Accounting 1 and your way of describing things is helping immensely! Thank you for the hard work - best wishes for your channel!
Great to hear that! Happy to help. :-) Please subscribe, and tell your friends and colleagues about the channel! Are there any topics that you think I should cover in upcoming videos?
@@TheFinanceStoryteller I missed your comment before...I’ve moved on to the next accounting class now. It goes over a lot on debt and equity investments, derivatives, taxes, and a ton of other stuff...the subject matter is incredibly broad...
@@Dilhack Good to hear from you again! Two videos immediately jump to mind that could help you: financial derivatives explained th-cam.com/video/H_rGN5wOkvY/w-d-xo.html and deferred tax assets th-cam.com/video/MvXAljQD4II/w-d-xo.html Other than that, try doing a search on TH-cam by typing the topic you are looking for and adding "finance storyteller" to it. For some videos, I even forgot that I ever made them. ;-)
Great to hear! Yeah, closing entries are not that hard if you know what you are trying to achieve by recording them. Please spread the word to fellow students! 🙂
something that would facilitate doing the debit and credit thing is the word "dea/ler" , see d = drawings , e = expenses , a = assets / l = liabilities , e = equity (owner's equity) (capital) , r = revenues . and as you see the prefix starts with d which indicates a debit normal balance , and the opposite is with the suffix as it's a credit normal balance. ✨ dealer ✨
Happy to help! There are many related videos in my playlists on accounting, such as this related video on adjusting entries th-cam.com/video/57CST6_RtWk/w-d-xo.html&pp=gAQBiAQB Have a look through it, and watch whatever might be useful to you.
Great to hear that! More useful videos in these playlists, have a browse through them: Accounting 101 th-cam.com/video/b93KBmcXanI/w-d-xo.html&pp=gAQBiAQB Intermediate Accounting th-cam.com/video/lBvnSgIGVnU/w-d-xo.html&pp=gAQBiAQB
Thank you so much, Lisa! Very happy to hear that. Please subscribe to the channel, I might have a few more accounting videos that are useful for you, such as the videos in this playlist: th-cam.com/video/b93KBmcXanI/w-d-xo.html
Glad it was helpful! Please subscribe, and check out my intermediate accounting playlist, there might be more useful videos for you: th-cam.com/video/57CST6_RtWk/w-d-xo.html
I kindly request clarity on this; you said that we post-closing entries after finishing the financial statements. does this mean that financial statements are prepared without knowing the value of the retained earnings? what should come before the other? is it closing entries, then financial statements? or vice versa. in my thinking, I think closing entries help update the capital account or retained earnings account, which then helps with preparing full financial statements. please kindly elaborate on this.
Is it safe to expect that most accounting softwares, like Xero and QBO, will do most if not all closing procedures for you? With the exception of adjusting entries
Hi Kyle! Yes, many of those steps have been automated in accounting software. I have no specific experience with Xero and QBO though, so can't tell you specifically what is or is not included.
Please answer this its interesting question....what if the company received its account receivable account....then we will make adjustment on it at the end of the accounting period then A/R become =0....so in those case A/R account hasn't transferred to the next accounting periods...so can we still consider it as permanent account or a temporary one?
Whether an account is a temporary or a permanent one, is decided by its nature rather than its balance. Assets, Liabilities and Equity are permanent accounts. Dividend, Expenses and Revenue are temporary accounts. A/R is an asset account.
Yes, that should be an automated run, although I have not specifically used Xero or Quickbooks, so cannot tell you which buttons to press to make it happen.
Yes, it's an account that is not used in day-to-day accounting entries, it's purely a "technical" account that helps to transition amounts from temporary accounts to retained earnings.
What these closing entries do is to "purge" the data from the current year, and get the accounting system ready to start recording data for the next financial year. Closing entries come in at the very end of the accounting cycle, after you have performed adjusting entries th-cam.com/video/57CST6_RtWk/w-d-xo.html etcetera. So study debits and credits, T-accounting, and adjusting entries first, and only then dive into closing entries.
![3 Easy Steps - How to Record Closing Entries [SUPER FAST]!](http://i.ytimg.com/vi/E6-8SIM1VRc/mqdefault.jpg)
Enjoyed this video? Then please subscribe to the channel, and let's review debits and credits DC ADE LER in more detail th-cam.com/video/b93KBmcXanI/w-d-xo.html and/or learn more about preparing a trial balance th-cam.com/video/SpAwI_SSDHY/w-d-xo.html
Helpful tip - if you switch the letters around at 1:00 it spells out the acronym DEALER to help remember whats a debit and whats a credit. DEA on left (debits), LER on right (credits)
Good one! Whatever works for you to remember it. 😎
I like to remember it as Dade and Cler
Debits:
Assets
Dividends
Expenses
Credit:
Liabilities
Equity
Revenue
sort of like Bonnie and Clyde haha
You're a lifesaver I got an exam a while ago about closing entries I knew nothing then after watching this vid it was pretty basic after all lol i got a 38/40
Wow! Well done! Congratulations. So happy to hear that. Hope you will find more useful information on my channel for future exams, here's the link to the playlist with intermediate accounting videos: th-cam.com/video/lBvnSgIGVnU/w-d-xo.html
That's awesome! Hopefully I pass mine but this vid helped me so much
That was AMAZING the way you broke this down was just amazing can't find any other word to describe it, straight to the point, simple, concise. Thank you I just subbed and will be binging all your videos for my accounting for decision making class!
Wonderful to hear that. Please share the link to the video and the channel with your fellow students, and have a look at the following playlists to see if there are any more videos that could help you:
Accounting 101 th-cam.com/video/b93KBmcXanI/w-d-xo.html&pp=gAQBiAQB
Intermediate accounting th-cam.com/video/lBvnSgIGVnU/w-d-xo.html&pp=gAQBiAQB
Just want to stop by your most recent video to let you know I’m binge watching most of them 😁 I’m in the middle of Intermediate Accounting 1 and your way of describing things is helping immensely! Thank you for the hard work - best wishes for your channel!
Great to hear that! Happy to help. :-) Please subscribe, and tell your friends and colleagues about the channel! Are there any topics that you think I should cover in upcoming videos?
@@TheFinanceStoryteller I missed your comment before...I’ve moved on to the next accounting class now. It goes over a lot on debt and equity investments, derivatives, taxes, and a ton of other stuff...the subject matter is incredibly broad...
@@Dilhack Good to hear from you again! Two videos immediately jump to mind that could help you: financial derivatives explained th-cam.com/video/H_rGN5wOkvY/w-d-xo.html and deferred tax assets th-cam.com/video/MvXAljQD4II/w-d-xo.html Other than that, try doing a search on TH-cam by typing the topic you are looking for and adding "finance storyteller" to it. For some videos, I even forgot that I ever made them. ;-)
@@TheFinanceStoryteller thank you!
@@Dilhack You're welcome! Let me know if you come across topics in your class that you think might be good for me to cover in a video.
You are master of visuals and easy explanation! Such a high value information!
Wow, thank you!
Excellent presentation.Thank for teaching
You are welcome! Please spread the word to friends and colleagues.
Super clear explanation! Came here after my tutorial which was super confusing. Thank you!!!!!
Great to hear! Yeah, closing entries are not that hard if you know what you are trying to achieve by recording them. Please spread the word to fellow students! 🙂
Finally you have given a shape to your voice.. :) Thank you..
My pleasure 😊 One of rare occassions where I make a guest appearance in my own video!!!
This dude made this so simple
Happy to help!
something that would facilitate doing the debit and credit thing is the word "dea/ler" , see
d = drawings , e = expenses , a = assets /
l = liabilities , e = equity (owner's equity) (capital) , r = revenues .
and as you see the prefix starts with d which indicates a debit normal balance , and the opposite is with the suffix as it's a credit normal balance.
✨ dealer ✨
Yes, that is very useful to remember!
@TheFinanceStoryteller all the credit to my professor's assistant
I can finally skip my night class coz I have already covered the chap 4 in acct 110. thank you so much
Work hard and work smart! :-)
Thank you very much! Great work! I`ve been looking for something like your videos for a long time! Thank you!
Glad to hear that! You've found me! 😉 Hope you find lots of useful stuff on my channel, there's 200+ videos for you to browse through.
@@TheFinanceStoryteller Yes, cause you are the best! I already found a lot of useful information and see that there is a lot more ahead!
Nice! Please subscribe, and share with friends and colleagues.
you are the best. thanks for your explanation!
Glad you think so! Thank you!!! Have you watched the related video on adjusting entries as well? th-cam.com/video/57CST6_RtWk/w-d-xo.html
Great video helped me a lot with my accounting class! Thank you!!
So happy to hear that, Bethanie! Please share with your fellow students. I hope you find some more videos on this channel that are helpful to you!
Thank you so much I am a college student it Taiwan and this really helped me so much !
Wonderful to hear that! Wishing you lots of success in your studies.
Thanks so much for making this video. It was easy to understand and I appreciate that a lot.
Glad it was helpful, Wesley! Please subscribe to the channel, and spread the word!
Please make more videos!!!! You are great at these explanations
Thank you, Aryan! I am aiming for one or two new videos per week.
Wonderful video.
Thank you very much!
Great video and explained very well! Thank you so much!!
So happy to hear that, Christian! Thanks for the kind words.
Thank u sir for explaining 🤗 closing entries
You're welcome, Abhinav!
Great explanation. Thanks
Happy to help! There are many related videos in my playlists on accounting, such as this related video on adjusting entries th-cam.com/video/57CST6_RtWk/w-d-xo.html&pp=gAQBiAQB Have a look through it, and watch whatever might be useful to you.
Very helpful! Thank you so much :)
Great to hear that! More useful videos in these playlists, have a browse through them:
Accounting 101 th-cam.com/video/b93KBmcXanI/w-d-xo.html&pp=gAQBiAQB
Intermediate Accounting th-cam.com/video/lBvnSgIGVnU/w-d-xo.html&pp=gAQBiAQB
Thank you. This is very helpful.
Happy to hear that. Thank you for watching and commenting. 🙂
Thank you so much for the explanation
Glad it was helpful!
Excellent, Thank you 🤝
My pleasure! :-)
wooow, this explaination was soo good, thankyou very much sir
Thank you so much, Lisa! Very happy to hear that. Please subscribe to the channel, I might have a few more accounting videos that are useful for you, such as the videos in this playlist: th-cam.com/video/b93KBmcXanI/w-d-xo.html
Than you so much! What a great explanation
You're very welcome!
Perfect explaining 👏👏
Glad it was helpful! Please subscribe, and check out my intermediate accounting playlist, there might be more useful videos for you: th-cam.com/video/57CST6_RtWk/w-d-xo.html
I kindly request clarity on this; you said that we post-closing entries after finishing the financial statements. does this mean that financial statements are prepared without knowing the value of the retained earnings? what should come before the other? is it closing entries, then financial statements? or vice versa. in my thinking, I think closing entries help update the capital account or retained earnings account, which then helps with preparing full financial statements. please kindly elaborate on this.
You are right. The sequence is:
Prepare income statement.
Perform closing entries.
Prepare balance sheet.
God bless your soul
Thank you, Jeron!
Thanks you legend
Happy to help!
thanks a lot 🙌🏻
Happy to help! Thank you for watching and commenting.
Superb sir
Wow. Thanks for the kind words, Abubakker! Much appreciated.
Very good fam
Thanks 💯
really helpful bos
Glad to hear that 😊 Please share with friends and colleagues!
Is it safe to expect that most accounting softwares, like Xero and QBO, will do most if not all closing procedures for you? With the exception of adjusting entries
Hi Kyle! Yes, many of those steps have been automated in accounting software. I have no specific experience with Xero and QBO though, so can't tell you specifically what is or is not included.
Thank you
Happy to help!
Nice.
Thanks!
Thank you sir
You're welcome, Tekabech! :-)
Please answer this its interesting question....what if the company received its account receivable account....then we will make adjustment on it at the end of the accounting period then A/R become =0....so in those case A/R account hasn't transferred to the next accounting periods...so can we still consider it as permanent account or a temporary one?
Whether an account is a temporary or a permanent one, is decided by its nature rather than its balance. Assets, Liabilities and Equity are permanent accounts. Dividend, Expenses and Revenue are temporary accounts. A/R is an asset account.
Awesome
Thank you, Kajanan! Happy to hear that.
And thank you sooo much
You're welcome! Happy to help!
Thank you!
You're welcome!
Good.
Very good
Hi please one video on provision, reserve,
Hello Vikash! What I have to offer in that area for now is my video on accruals th-cam.com/video/lBvnSgIGVnU/w-d-xo.html
Is not retained earnings account shown as separate in post close trial balance ?
Yes, that is probably a good thing to do.
Thanku. So much
Most welcome, Shakeel!
accounting software (Xero/Quickbooks) does this all automatically right?
Yes, that should be an automated run, although I have not specifically used Xero or Quickbooks, so cannot tell you which buttons to press to make it happen.
That what I am trying to figure out. How to do it in accounting software
thanks
Wait is the income summary stated here an account?
Yes, it's an account that is not used in day-to-day accounting entries, it's purely a "technical" account that helps to transition amounts from temporary accounts to retained earnings.
❤
What exactly is the reason temporary accounts must be closed ?
To start with a clean slate at the start of the new accounting year.
Is this your first face reveal?
Edit: Oh never mind. You already did that in your previous video
Yep. Felt like doing some "personal introductions" to the topics. Does it work?
I always think of where the account is going so I do debits first anyone else do it that way too?
I still didn't understand I need more help...
What these closing entries do is to "purge" the data from the current year, and get the accounting system ready to start recording data for the next financial year. Closing entries come in at the very end of the accounting cycle, after you have performed adjusting entries th-cam.com/video/57CST6_RtWk/w-d-xo.html etcetera. So study debits and credits, T-accounting, and adjusting entries first, and only then dive into closing entries.
Thank you!
You're welcome!