Hello All! Did you find the T accounts or examples helpful? or the trick I left in the description? Love to hear from you, let me know in the comments!
this has helped so much as someone with an engineering background understnding numbers in terms of added and subtracted. On that note, does anyone mind explaining why in the last example, accounts receivable got credited by $1000? I understand that receivable would be on the debit side but why is it being reduced is my question? Thanks and looking forward to more videos!
Hello, I am happy to further explain. You are correct, both Cash and Accounts Receivable are on the "Debit" side meaning they carry a normal debit balance, they are both assets and are increased by debits. That also means that these accounts are decreased by credits. In the example, the company is collecting cash from a customer. The cash collected increases the cash (a debit to cash), which means the accounts receivable account must decrease, therefore you credit accounts receivable. Remember, before this event, the cash collection, the sale to the customer was recorded by debiting accounts receivable and crediting sales. That initial debit increased the accounts receivable balance, the cash collection then credits accounts receivable to cancel out the balance the customer owes to the company. Hope this helps clarify the example. Thanks!
Hello, if I understand correctly, you are asking if the collection of Accounts Receivable would result in income. The answer is no, the collection of an account receivable is a transfer from an asset (open Account Receivable to Cash (another Asset). The related income is recorded before this collection happens. When the business records the sale on credit, the income account is credited (under equity) and a receivable is debited (an asset). This is an example of accrual accounting. Hope this answers your question.
Im doing my own books. I paid my LLC annual franchise tax of $800 using my personal credit card. Is it correct to record it like this?: debit taxes and credit owners contribution?
hi, you can reach me at julietconciergecpa@gmail.com, or post your question here and I will try my best to answer it. I have a blog, not much there yet, but I have two articles that might help, myconciergecpa.com/debits-and-credits-in-accounting/
I repeated severally to understand how debits and credits work before. You just simplified that in less than 9 minutes. In a very simple manner. ❤❤
Excellent! Glad it was helpful.
Hello All! Did you find the T accounts or examples helpful? or the trick I left in the description? Love to hear from you, let me know in the comments!
Seriously two books and 3 days watching videos and your explanations and graphs pull it all together nicely. Thank you!
Thank you for your feedback. I am so glad the video was helpful! 😃
@@ConciergeCPAthanks for your video 🎉
This is by far the best explanation on YT. Thank you for explaining things so clearly and for having so many great examples.
Thank you for your comment. Really appreciate the feedback. I am so happy the video helped you.
Excellent
Thank you!
this has helped so much as someone with an engineering background understnding numbers in terms of added and subtracted. On that note, does anyone mind explaining why in the last example, accounts receivable got credited by $1000? I understand that receivable would be on the debit side but why is it being reduced is my question?
Thanks and looking forward to more videos!
Hello, I am happy to further explain. You are correct, both Cash and Accounts Receivable are on the "Debit" side meaning they carry a normal debit balance, they are both assets and are increased by debits. That also means that these accounts are decreased by credits. In the example, the company is collecting cash from a customer. The cash collected increases the cash (a debit to cash), which means the accounts receivable account must decrease, therefore you credit accounts receivable. Remember, before this event, the cash collection, the sale to the customer was recorded by debiting accounts receivable and crediting sales. That initial debit increased the accounts receivable balance, the cash collection then credits accounts receivable to cancel out the balance the customer owes to the company. Hope this helps clarify the example. Thanks!
Thanks for making it easy to understand
Thank you for your feedback!
Thanks for this very informative video about very confusing debits and credits.
Glad it was helpful!
Thank you for making it so easy. Love this video, keep them coming
Thank you! I am thrilled you enjoyed it and learned something new
NEED MORE HELP?
check out my article:
myconciergecpa.com/debits-and-credits-in-accounting/
Great job , could you do an practice example on quickbooks from chart account to the end
Thank you and yes, I will add to my list of topics.
How i learn accounting by you😊
Wouldn't the payment of an AR fall under income rather than Asset (7:40 timeline in vid).
Hello, if I understand correctly, you are asking if the collection of Accounts Receivable would result in income. The answer is no, the collection of an account receivable is a transfer from an asset (open Account Receivable to Cash (another Asset). The related income is recorded before this collection happens. When the business records the sale on credit, the income account is credited (under equity) and a receivable is debited (an asset). This is an example of accrual accounting. Hope this answers your question.
Im doing my own books. I paid my LLC annual franchise tax of $800 using my personal credit card. Is it correct to record it like this?: debit taxes and credit owners contribution?
yes, that is correct, you debit tax expense and you credit owner's equity. Best of luck!
@@ConciergeCPA Thank you.
🙌 Promo-SM
Good
Thanks
Can I have your contact no plz need clear my doubts I m bit confused still beyween debits and credits
hi, you can reach me at julietconciergecpa@gmail.com, or post your question here and I will try my best to answer it. I have a blog, not much there yet, but I have two articles that might help, myconciergecpa.com/debits-and-credits-in-accounting/