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Jul
18

Accounting 101 Part 08 Journal Ledger

Eighth in series of 17 videos describing the essential ideas typically covered in early weeks of a university-level accounting principles course. This discusses the general journal and general ledger.
Video Rating: 4 / 5

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26 comments

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  1. chandragini says:

    This is fantastic………….thank you so much

  2. spaden2112 says:

    @enlight09 this is a good video, but doesn’t this guy sound like he is living in his parents basement and trying not to wake them up?

  3. smokenfly514 says:

    Reminds me of my fundamentals of business class haha, so elementary

  4. sabelilah says:

    @enlight09 3:35 how is rent increasing if we have paid for it? do i need to know this? or can i just memorize that dividends and expenses always get debited and equity and revenue always get credited?
    thank you so much for uploading all this

  5. gralvien says:

    well the wordings on the screen are small and blurry…..

  6. yunggunna1024 says:

    Honestly, this has been the most helpful accounting 101 lesson ever. After reading the same chapters in my book 1000 times and never getting it, and after just 1 view of each part of these videos I finally get it. Thank you so much enlight09(whatever your real name is =D )

  7. ToiYeuDatNuocCuaMinh says:

    Asset increase=debit
    decrease= credit
    Liability increase=credit
    decrease=debit
    equity increase=credit
    decrease=debit
    Revenue increase=credit
    decrease=debit
    Expense increase =debit
    decrease = credit

  8. aznaturalmom says:

    I can’t believe that after reading this stuff and not understanding the textbook – that I finally got it from this set of videos.

  9. mustafasohail456 says:

    PLs post atleast one example of expense decrease to clearify the concepts ….. thanks for the help

  10. mustafasohail456 says:

    It means that here telephone bill and salary expense is accrued expense …

  11. enlight09 says:

    With no other info, entries look right to me.

    Most often, these are “accruals”. But, in your earlier prepaid phone card example, the asset might be called a “deferral”.

    Watch out for the specific phrase “accrued expenses” — it’s often used to specify a liability account!

    “Accrual” involves activity leading up to a cash transaction; “deferral” involves activity related to a past cash transaction.

  12. mustafasohail456 says:

    thnx for appreciation

  13. mustafasohail456 says:

    In My Text Book There Are Questions That Are Troubling Me …. Pls Check My Journalizing Is Correct Or Not

    Q1 : Mr Jamil Paid Cash For Telephone Bill
    Ans : Telephone Expense (Debit)
    Cash (Credit)
    Here Telephone Bill is accrued expense???

    Q2 : Mr Jamil Paid Cash To His Salary Staff
    Ans: Salary Expense (Debit)
    Cash ( Credit)
    Here Salary Expense is Accrued Expense???

  14. enlight09 says:

    Nice example!

    Expense happens when you talk on the phone, not when you pay the bill!

    Again, that is true whether you pay the phone company before or after dialing numbers. If you pay before, you are buying an asset; if after, you are reducing a liability.

  15. mustafasohail456 says:

    For Example We have telephone for office use …. we pay in advance $100 And They Give Us 100 Minutes …… So Debit “Asset” (Prepaid Expense) & Credit “Asset” (Cash Decrease) …….. Imagine We used 50 Minutes ……. So usage of 50 minutes increases expense and decreases 50 minutes (asset ) ….. My journalizing is correct or not?

  16. enlight09 says:

    Events seem mixed.

    Event #1: We turn on lights; that alone causes Expense. We don’t pay for electricity at the moment we use it, so we also incur a Liability.

    Event #2: We pay Cash. Paying Cash only reduces our Liability.

    Imagine we own huge batteries; we charge the batteries only once a year by connecting to the electric companys power. Expense would still happen only when we turn on a light – NOT when we pay for the electricity; it’s true whether cash is paid before or after using power.

  17. mustafasohail456 says:

    When We Pay Some Expense , So Expense Must Decrese …. For Example “Paid Electric Bill Rs $200” …… So Expense Must Decrese Why Expense Is Increasing

  18. mustafasohail456 says:

    DIDNT UNDERSTAND “the choice is firm-specific. Generally, the more quickly the thing is consumed, the more practical it is to debit Expense.”

  19. enlight09 says:

    Both can be correct. In the “real world,” the choice is firm-specific. Generally, the more quickly the thing is consumed, the more practical it is to debit Expense.

    That is not easy to decode in a textbook problem which creates exactly the question you raise!

    Try viewing parts 10 and 11 & you will see that, whether you debit Asset or Expense, it will need to be adjusted anyway.

    That is why there is no RIGHT answer to your question. But both ways should lead to the RIGHT financial statements!

  20. mustafasohail456 says:

    a question in my book is troubling me: ” Mr Jamil Purchased Stationary For Office Use” ….. According to me the answer should be “Stationary (Asset) Debit Cash(Asset) Credit” But in the book it is written like this “Stationary Expense Debit And Cash Credit” Which one is correct …

  21. enlight09 says:

    Trust the equations. If assets increase and nothing is borrowed, the equation says equity MUST increase!

    Say you have 10 in your wallet. Remove 2 and put them in an empty pocket now, account ONLY for what is in your pocket: It has assets of 2, you own those 2 – the pocket is worth [or has equity of] 2.

    Your wallet now contains only 8 – looks as if you have lost 2. But you own BOTH your wallet and your pocket , your total equity is 10!

    Wallets and pockets each use separate equations!

  22. mustafasohail456 says:

    i “a)” transaction why owners equity is increasing ….. we have invested 12000 in form of cash …… so owners equity account must be deducted

  23. vinsont says:

    Finally someone that knows how to make this simple. Thanks Dude!!

  24. exd11183 says:

    geez much easier to retain than reading books again. thnx 🙂

  25. LoasthaGhost says:

    you are awesome Thank You

  26. Anthony Caruso says:

    Thank you for this…As a CPA Im very fond of this reading….

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