Double Entry Accounting, the Accounting Equation, and T Accounts

This video provides an overview of double-entry accounting, the accounting equation, and T accounts. Double-entry accounting is the foundation of accounting. Without it, we would not have accounting. One basic tenant is that debits must equal credits. One helpful tool to ensure that accounts balance and to assist young accountants to understand how to make entries is "T accounts." In this video, I provide several T account examples. Additionally, I explain the accounting equation. Lastly, I provide an overview of how debits and credits affect asset, liability, revenue, and expense accounts.

00:00 Introduction
00.24 Accounting equation
02:28 Debits equal credits
03:15 Buying supplies with a check
06:22 How debits and credits affect accounts
10:37 Buying supplies with a credit card
12:01 Buying equipment and supplies on account
14:22 Paying a loan payment to the bank
16:38 Summary

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[JanSpiegel-qq]

Been doing accounting for over 40 years and still use T accounts from time to time. Great video. Keep them coming.

[davidhowell]

Thank you Charles. Your timing is incredible. I am starting a new assistant staff accountant Monday morning and watching these videos this is the first thing I am assigning him. Thank you very much.

[bibistella]

This is insightful. Thank you Charles. this is great information and timely too. I have been following your news letters at @ *Charles Hall talk* and i don't regret it. thank you so much.