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Double Entry Principle
24 Minute Accounting

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Module 1 | 24 minute Accounting | |
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Unit 1 | 24 Minute Accounting Pretest | |
Unit 2 | 24 minute Accounting Course Overview | |
Unit 3 | Accounting Department Structure | |
Unit 4 | Which Accounting System to Use? | |
Unit 5 | Accounting Concepts | |
Unit 6 | Double Entry Principle | |
Unit 7 | Accounting Cycle | |
Unit 8 | Chart of Accounts | |
Unit 9 | Recognition of Revenue | |
Unit 10 | Accounting for Inventories | |
Unit 11 | Accounting for Fixed Assets | |
Unit 12 | Income Statement | |
Unit 13 | Balance Sheet | |
Unit 14 | Auditing for your Business | |
Unit 15 | 24 minute Accounting Posttest |
Survey Questions
Hi, in this video you will learn about the basics of accounting; why you need to Debit and Credit accounts.
In order to record financial transactions related to an organization, you need to understand which accounts are affected. There will be a Debit and a Credit for each transaction; the Double Entry principle.
Each transaction will impact at least one type of balance sheet account; an asset, a liability, an equity, or one type of an expense, or a revenue account, or even a combination of both. The total debits can be one or more class of accounts, or both debits & credits can be passed in the same class of accounts. The net result is that all debits should equal all credits for each transaction.
The Rules to the Double Entry principle are as follows:
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The Dual effect principle – The phrase ‘balancing the books’ comes from this principle. This principle is the foundation of accounting. This concept states that every transaction has a dual or double effect and should therefore be recorded in two places.
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The Separate Entity principle – This is the basic accounting concept that we should always separately record the transactions of a business and its owners. The owners’ personal transactions are not included in the books of the business, unless it affects the business
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The Accounting Equation – The accounting equation is: Assets = Liabilities + Shareholder Equity. Actually, the accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company's shareholders. In balancing the books, the balance sheet will always reflect this equation.