Accounting Lecture 03 Part II - Debits & Credits, Continued

An introduction to debit and credit entries in accounting systems and to the trial balance. Part II of two parts.

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[7ifrah]

I find the first table in Module 1 of Assets=Liabilities + Owner's Equity a bit difficult. Once get that table the T-account and trial balance is not very difficult to do.

My teacher have also taught balance c/d (carried down) and b/d (broad down) in T-account (Ledger). I didn't understand it very much in the first class :(

Can you explain a little bit on c/d and b/d ?

[AccountingTutor]

@7ifrah

Very sorry, but I don't know what is meant by "broad down." The way the balance is calculated and displayed in the ledger accounts is not very important outside of accounting class. It is necessary to keep the balances in some way, so that the trial balance and the financial statements can be prepared from them. How they are kept can vary depending on the system that is used.

[7ifrah]

Thank you for the videos. Helping me a lot in learning the basic of accounting as I have no background in accounting and getting some problem in class in understanding lectures.

My teacher have taught T-account (Ledger) after General Journal Entries. We have then made T-account with the help of Journal Entries. Why didn't you teach us making Journal entries first and then T-account??

[AccountingTutor]

@7ifrah

The journal is used to make a record of the transactions that have occurred so that errors can be found later on if there are problems in the ledger accounts. The journal is necessary, but the "real" entries and the account balances are all found in the ledger. If you understand the ledger accounts, debit and credit entries to the ledger accounts, and how ledger account balances are obtained, you have the basics of accounting.

[AccountingTutor]

Trade discounts are just a pricing mechanism that determines the actual price the goods will be sold for. They are not recorded in the accounting records. For a complete discussion of trade discounts and cash discounts, see my two videos on Merchandising.

[TheRd1515]

isn't accounts receivable a liability please respond i have exam on tuesday

[AccountingTutor]

@TheRd1515

No, sorry. Acct's Receivable is an asset, Acct's Payable is the liability.

[7ifrah]

@AccountingTutor Alright thank you so much Sir.



[Bananensaft1993]

Really nice, thank you :) helps me alot !

[mayumee07]

Thank you very much!

[MsBao1989]

Thanks! very helpful!

[ainokainen]

Thank you for making the debits and credits memorable. I had problems with them before.

[theviewtoakill]

Thanks for this!

Had to take some time off from work but have a small test to take before I start my new job. Good refresher this and it all came flooding back to me LOL!