Every business needs to have basic office accounting procedures in place. Accounting is the foundation of … More
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Accounting Basics
Basic Accounting Principles
Converting Cash to Accrual
Creating a Balance Sheet
How to Define a Trial Balance
What Courses Do I Take to Become an Accountant?
How to Define an Income Statement
How to Define Positive Cash Flow
How to Become a Accountant
How to Become a Certified Public Accountant
CPA Educational Requirements
How to Pass the CPA Exam
How to Explain Debits & Credits
How to Do Accounting Transactions
What Can I Do With a CPA License?
What Are the Benefits of Being an Accountant?
How to Reconcile a Bank Balance
What Is Private Accounting?
Why Are Ethics Important in Accounting?
Why Study Accounting?
Importance of Accounting
Posting to the General Ledger
Excel Checking Reconciliation
Every business needs to have basic office accounting procedures in place. Accounting is the foundation of … More
Basic accounting involves taking daily financial transactions and properly classifying them, summarizing t… More
Accounting is important for allowing a business or organization to understand its financial perspective. L… More
Common accounting terms include "payable" and "receivable," which describe money being owed to someone els… More
Managerial accounting is a branch of accounting designed to structure the financial obligations of managin… More
The difference between accounting and bookkeeping is that bookkeeping is the recording of a financial tran… More
To run a business and even some households, it is necessary to keep good records of all financial happenin… More
Every accounting transaction will always require recording a credit and a debit. Make accounting easier by… More
In the management of a company's finances, the relationship between spending expenses and profitability is… More
You work out of your home office, but it is a complete wreck. Financial records and credit card receipts … More
Record keeping is important for a small business because it's important to be able to access information i… More
Functions of an accounting department include receipt of money, paying bills, payroll, recording and track… More
Small-business accounting does not have to be complicated, nor do you need to purchase expensive software … More
Accounting is important to report financial information about world markets, the economy and the state of … More
Accounting is one of the necessary components of every business and personal life. It is also one of the m… More
Summary: Every accounting transaction will always require recording a credit and a debit. Make accounting easier by using software designed to take care of simple equations with tips from a certified public account in this free video on accounting.
Shanis Windland has a Bachelors of Science degree in accounting from Central Washington University. She is a certified public accountant licensed in the state of Washington. Windland...read more
"In this clip, we're going to talk about how to do accounting transactions, and before you know how to do accounting transactions, you have to understand some basics about debits and credits. A debit is simply the left side of your general ledger, and a credit is the right side, because, as you can see, a debit will increase and decrease on different types of accounts, and a credit will increase and decrease on different types of accounts. For every single entry you do, you always need a debit and a credit. And I'm going to show you an example of a couple of entries. Accounting entries are generally done by your accounting software. Most people no longer do accounting entries by hand. So your software will really assist you in making these entries. But I just want to show you how they work. Let's pretend that we sold some candles that we make. In order to record the sale of those candles, we would debit cash for two hundred dollars, and credit revenue for two hundred dollars. This would decrease our cash account and increase our sales or revenue account. A lot of times, this type of transaction is done through a checkbook in a particular accounting software. The second type of entry I'll show you is where we bought some supplies. First, we would debit our expense account, and you can have many different names for your expenses accounts, like Supplies, or Office Supplies, whatever works best for you to call it. And then, you would credit Cash, or decrease Cash for the amount you paid for those supplies. Then, the most important part to making an accounting transaction is to give a description, like, "to record payment for supplies." And that's how you do accounting transactions."
eHow Article: How to Do Accounting Transactions
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