Journal Entries Hacks 🧐. Two Methods to NEVER forget Debits and Credits

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In this video I show you the 2 best ways to ALWAYS remember your Debit & Credits, including how to do so using the Accounting Equation.

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[arhaandesai]

In India we have 3 rules for journal entries
1- Debit what comes in
Credit what goes out
(For example you buy a new computer for 5000 so computer comes in your business so DR and cash goes out so CR)

2- Debit the receiver
Credit the giver
(This is mainly used for your bills let’s say you bought goods worth 3000 on credit from John. Now here john is the giver of the goods so he goes CR and purchase of goods comes in your business so DR)

3- Debit the expense
Credit the income
(For example you have to pay 10000 salary so you made an expense so you DR salary and money goes out of the business so cash/bank will become CR.
Another example having two rules in one journal entry would be Let’s say that you received 100 as dividend so here Credit the income dividend would be CR and debit what comes in so cash comes in it would be cash/bank DR)

Hope you guys found it helpful

[questionresearch]

I love it. Your channel is excellent. I remember my first accounting class and I remember how I understood everything. 🙂

[hazemgamal]

Super Simple ! Thanks Bill for making it very easy.

[bduran]

I found the equal and opposite force analogy incredibly useful in moving forward in being able to implicitly understand journals and DE accounting when I first started, DEADCLIC just always seemed so clunky!

[joshcampos]

I’m accounting 2 right now. This is the best channel I have found for studying!

[mstephen]

Thank u for explaining the 2methods lots of clarity on the concept 👍

[rhyme]

Excellent videos! I don't know anything about accounting but I can understand easliy with your explaination!

[syedm]

Please put more videos on accruals income and expenses, prepayment income and expenses. How do we treat in the regular organisation transactions. What are the JEs. Treatment in financial statements.

[lmwold]

The Accounting Equation, 100%. But thank you for showing both. Keep up the great work.

[kwamebaidoo]

Thanks for the video. I learned this a long time ago but I was surprised when the bank used the term credit (to my bank account) whenever I deposited money. I asked my accounting teacher why they were doing it backwards and he took the time to explain to me the differences in the recording especially for third parties. And oh I think the Div in the acrostic (DEALER) needs a qualifier since you're referring to a Dividend expense the reverse would be true for a Dividend Income which is rare but could actually happen.

[LunaPriscilla]

This video is golden, I'm about to graduate in Accounting and I have my last big exam tomorrow, this is a quick refresher. Thank you!

[questionresearch]

I was waiting on examples. 👏👏 Thank you!!!

[pascalmadanat]

Thank youu, it's really useful video. I enjoy it. We need more videos.

[shahnilakhan]

Your videos are helping me alot … Thank you so much 😊

[harleengonzalez]

This is the best video ever. Thank you so much. No one has ever explained it this before.

[HeatherHollaway-bvkc]

You just blew my mind away by explaining the Dealer method in the accounting equation. I now understand how they relate. I have got a lecture on accounting so this was extremely helpful. I about half way through my accounting degree and this helped me understand when I am doing entries how to classify where they go. My professor actually told me about your videos! Thank you!

[Freedomfastlane]

This is indeed the simplest way to remember how it works! 👍😊

[WIZCO]

Thank you for covering all of this, can't wait to start using some of this once I finish my schooling!

[omomeosakue]

This is really good stuff, made it so simple, thanks!

[thewreathmeshine]

Thank you so much for the clarification! I was struggling until I found your videos!