Thanks, good explanation. I’d also recommend this article for beginners:
http://www.myhowtoos.com/en/at-work-howtoos/80-understanding-accounting-basics
Hi!
I’ve got to say I am a sophomore in college and am taking my first accounting class. The first and second day of class, I was utterly confused I was almost in tears from frustration! LOL…I even started getting a headache from having to think too much!
However after reading your tips, I’m feeling a little better. We’re currently working on “T” accounts and changing balance sheets (i think thats what its called) I’m feeling a little more confident know! THANK YOU!!! I was this close to dropping the class and trying again later!
@Eureka: Awesome, glad it was useful! Good luck in your class!
It is great , This is the way to explain anything.
@sarvjeet: Glad you liked it!
hi,
One concept that my boss made me rote learn is ‘credit the giver, debit the receiver while you are making a posting’.
But i can’t figure out whether credit,debit will be useful in single entry book keeping?
The way accounting is explained in this passage make itthat muck easier to understand. Thanks for this website I fill I can do anything in accounting.
I am at a point in my life where my career progress is stunted because i do not have a professional qualification in accounting. I found this website while looking for some simplified study tips .Thank you so much for this encouragement, i definitely feel i can give it a shot as I intend to go on to ACCA later. My college degree is in the arts but i enjoy maths and really like my job. Do you have any tips for someone like me? God bless you.
Hi there, I dont know if I am writing in a proper board but I have got a problem with activation, link i receive in email is not working…
i need to balance an account sheet within 3 days, but i don’t know how, i also need to know what is meant by account payable, withdrawable, etc. pls… help
Thank you so much. You helped me out alot.
I am using a cash payment journal that has 3 special amount colums. Under what circumstances would there be a need for additional colums.
I UNDERSTAND THAT ASSETS AND EXPENSE HAVE A DEBIT
BALANCE BUT I DONT UNDERSTAND THE CONCEPT OF HOW
TO BUT THEM ON THE BALANCE SHEET OR WHEN DO I CREDIT OR DEBIT AN ACCOUNT AND WHAT COMES FIRST
THIS IS MY SECOND TIME TAKING THIS COURSE AND I JUST AVERAGING A D BARELY.HELP ME UNDERSTAND THIS ‘’
45 YEAR OLD
STUDENTyoure saying credit the giver and debit the reciever I dont get it.are you referring to the
owner as the giver or the customer .
Here is what I have read about that…
The one giving in the transaction is the credit(or), and the one receiving in the transaction is the debit(or).
i.e. Sell an hour of service, the the service revenue is the giver (so it’s credited), and the cash in the bank is the receiver (so cash is debited) and increased.
Hope that helps you like it did me.
This website info on accounts is SHORT, SWEET AND SIMPLIFIED. You successfully simplified and “funnified” a complex subject…accounts.
@newby: Thank you! I really want to boil ideas into their bare essentials, and hopefully have some fun along the way :).
To assist with (T) Accounts, I was taught to categorize the transaction in the following way
- Personal (Accounts Receivable and Accounts Payables)
As the name suggests it would be a person/company and the entry format is Debit the Receiver and Credit the giver - Real Account (Cash, Property,Buying and Selling of Goods and Services that directly affect your business)
In this case Debit what comes in and Credit what goes out - Nominal Account
(Debit all expenses (losses)
Credit all income (revenue)
Based on the above you can qualify what items go where.
Nominal Accounts (transactions) are the ones that go into a Income Statement.
The Real Accounts & Personal Accounts are the ones that go into the Balance Sheet
Hope this helps