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Accounting For Beginners #20 / Chart of Accounts / Assets, Liabilities, Equity, Revenues, Expenses



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you know what it does see PageRank

strongest CP in Florida back at it again

damn Daniel with accounting for

beginners number 20

can you believe it we made it to 20 my

DC Aylor gang hopefully we don't get

targeted by the FBI we're not a gang

where's the crew we're an organization I

really appreciate all the comments all

the positivity you know as I'm helping

you

you're helping me I got to stay sharp

and you know they say like if you can't

explain something to somebody then you

don't even really know it

accounting for beginners series really

helps me to I think explain to my

clients the basics it reinforces my

ideas sometimes because sometimes I get

a question they said what is this or you

know you people you people you people

you people

you guys have viewers the commenters you

know you see something somehow you see

it different than that I would have seen

it so I really loved it this one here is

accounting for beginners number 20 chart

of counts this is kind of like something

that's so basic it just has to be done

you know you've got to know the basics

before you can move on let's start with

what the book says for chart of accounts

ah a group of accounts for a business

entity is called a ledger okay that's

great a list of accounts in the ledger

is called chart of accounts that's what

a chart of accounts is on a list of

accounts in the ledger and the ledger is

a group of accounts a list of accounts

is the chart of accounts so you know in

my last and my last video I talked about

abbreviations and don't review and be

lazy horizontally abbreviation for chart

of accounts but most of the time the

word says what it is it's a chart of

counts I would just think of it as a

list of accounts personally okay

the accounts are normally listed in the

order in which they appear in the

financial statements okay and I've said

before it's balanced she is the BigDog

balance sheet is the BigDog because that

goes from year to year and then

underneath is the income statement and

that's just that's just for a pure

certain period of time that's how the

charm accounts are listed the balance

sheet accounts are listed first in the

order of assets liabilities and owner's

equity okay

assets liabilities and owner's equity

that is the kind of equation assets

equal liabilities plus equity

alrighty the income statement accounts

are then listed in the order of revenues

and expenses ok the income statement

revenues minus expenses that's the

income statement five accounts in the

chart of accounts I'm kind of feeling

the red pen today okay for the chart of

accounts of course I'm going to start

off with my DC Aylor because I like to

show how applicable that is DC ade ler

debits credits assets draw expenses

liabilities equity and revenue don't

freak out here we don't need for the

chart of accounts we're not we're not

really concerned with if it's a debit or

card for the chart of accounts across

these out here all right cool

so now I cross those out look at our DC

alert there's only going to be five

boxes in the chart of accounts like five

boxes of chart of accounts could go the

chart of accounts is either going to be

an asset and that's the first one it's

going to be a liability that would be

the second listing on the chart of

accounts

now this one equity equity is going to

be the third and so I have put the draw

into the equity because there's not

there's not an actual on the chart of

accounts there's not an actual group

grouping or a box that's draw it if I

think this is 20 counting for beginners

number 18 talks about draws and how it

reduces equity so in the charts of

accounts and the balance sheet it's just

listed under equity so there's your

third box the fourth box that a chart

could go on that that an account could

go on in the chart of accounts is a

revenue the fifth one that I could go on

is an expense or expenses so as you see

DCA layer works beautifully again I

think you're going to have 10 different

accountants or bookkeepers and you're

going to have ten different you're going

to have ten different chart of accounts

you know someone's going to put

something somewhere like ink for your

printer

well that somehow I put that in supplies

someone might put that in office

expenses someone might have a section

for printing and reproduction someone

might have a section a separate section

for just ink or so not separate section

I'm sorry but different account names in

the expenses the beginner series and I

will get will get a little further will

be a little harder as we go on you know

I wanted to get this in before we go

further because you really have to know

the basics before you can go further and

that's just that's just the truth of the

matter in summary here for a chart of

accounts you're going to have five

different five different boxes it's

going to be an asset it's going to be a

liability

the equity it's going to be a revenue or

it's going to be an expense it's going

to be one of those five you know you can

name really whatever you want in assets

you can name whatever you want in a

liability you know you can make it

really specific really broad whatever is

on the chart of accounts there's going

to be one of these five and I wanted to

show you that DC Aylor works helps you

out again if you're like oh my god I

can't I don't even know what charts are

even I don't even know what accounts are

available I don't know nothing and as

you noticed they go from this is you

know in the order of the chart of

accounts one two three four five all

right so what is so what is this

that's balance sheet one two three

assets equal liabilities plus equity so

you can just go from left to right in

your account equation or DC aehlert and

then you know the correct order for the

chart of accounts what's revenue minus

expenses that's in come statement and

the income statement is revenues minus

expenses four and five you got so much

to work on I don't even know where to

start

you're like a fat kid wearing a shirt at

the water park deuces