Accounting Fundamentals | Journalizing

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In previous videos, we looked at how to record transactions using the “back of the envelope” method. Follow Mark Farber as he discusses how we record more complex transactions in accounting through journalizing.
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When we invest $500 into the business, the cash increases by $5000 so we debit cash and the capital decreases? Is that why we credit capital?

Btw thank you for this awesome video. 😃

arifkarim