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welcome back my dear students welcome
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back everyone welcome back nine years
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this is another lecture in the uh
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uh in the accounting and the fourth
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lecture in journal entries and today we
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will handle some other issues and some
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other topics
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uh regarding the payments of the company
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the pays of the company for the seller's
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example if we want to pay the salaries
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what we will do
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so let me go quickly to what we said
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before
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we talk in the purchases on credits
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like we would say as example if we
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bought inventory from the name of the uh
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thing which we did with stop which we
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bought
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so if it is on credit mean that you
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didn't pay you didn't pay for it in cash
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but you wrote on yourself permission
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notes or whatever you bought and you'll
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see you will pay later you will pay
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later on so from inventory into account
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payable from inventory into account
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payable and that's what we said in the
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previous lecture
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uh today we are going to talk about what
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to do because you have employees you
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have workers and you have to pay for
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them their own salaries so how will be
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the transaction recorded in the journal
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entries how we will record
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record this uh
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uh transaction
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so if we say company space it's a brief
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series of 300 for work performed during
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the past week uh so the work is done
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and you paid in cash so from the name of
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the expenses
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the name of the expenses into the cash
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from the name of the expenses into the
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cash let me do this in front of you
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again here
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let us take it and write it down
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and
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do the transaction
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control and C
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then I will go here right now and you uh
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entry
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we will go for it here
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and control and B and I will say here
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insert same thing like I'm doing table
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four by four not four by four the car
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but four by four here and this is like
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that way
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and this is like the way and by the way
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some students must be saying why you
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don't do it excellent because actually
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you will not understand what I'm doing
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right now but here you will understand
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what I'm doing because it's very clear
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to you what is like let's say on gen
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Jen
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seven
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on gen 7 company pays its employees so
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on John 7 I will take this and put in
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the date here Ctrl and c and put in the
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date here that's gen 7. there's its
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employees salaries so this is an
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expenses so the expenses name so here I
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will say salaries expenses
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sorry about that
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salary
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expenses
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because it's considered expenses
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and we put this in cash yes we paid this
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in cash then this is true cash
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and like I showed you before the amount
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is 300 I just just want you to do like
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this when I'm working this is
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controlling v300 and this is 300
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and we will move forward then
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let me put it in a just small one for 16
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upon 16.
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60 I think this would be fine
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okay and here is bold
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so that's it oh then
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payment of salaries
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this is the Declaration
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or the reason for the transaction and I
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will highlight it because it's not a
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part so some series might not be
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confused students will not be confused
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because some students might think this
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is a part of the transaction no this is
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the Declaration for what what this
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transaction done and the cash like I
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said will move it
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little bit to at the right
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so the expenses
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are debit
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so it will be on the left cash is credit
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would be Android so now why cash is
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credits because it decreased
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and we know that the assets when it is
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decreased the asset when it is decreased
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it is
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credits and it should be done written
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slight right to the right
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here it is like here slides
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to the right
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but the expenses should be to the left
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because it's debit debit to the left
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like you see here and that's why I want
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you to know even the manual uh Journal
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is very important to know to understand
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what we do here so like this is from
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from salary expenses Into Cash
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and the reason I said the reason look at
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this salary expenses increase in expense
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so this is debit
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and cash is decreased in an asset its
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credit
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that's why we did the transaction right
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that way
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that's why we did a transaction by that
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way
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okay
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like I uh like I used to do as you
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always we will
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do one with our hands right now
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on the exercise sheets we will do one
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with our hands on the exercises sheets
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here we go
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that's yours guys you guys will do this
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one
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companies pay it's employees expenses of
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only I would change the numbers here 700
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for work performance during the past
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year that was past week so I just want
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you I will give you a chance about five
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minutes to work on this and do it then I
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will solve it with you then we will move
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to another break thank you
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so we are back now we will do the same
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thing which we did before we'll insert
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the table and here at the answer of the
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question which will be going on on let's
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say on sorry about foreign
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[Music]
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then I will take here Jan 9 and put it
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here Ctrl and C so I didn't put this
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first so no problem for you guys it's
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your fine and like we said this line
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will be moved a little bit forward here
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and this will be moved a little forward
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here and then we will do from the
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seller's expenses
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employees base it's employees salaries
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of 700 so here I would say the salary
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expenses sometimes we write expenses exp
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that's fine if you wrote it like this I
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understand it that it's exp and you will
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find it in some textbooks only exp
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salaries expenses
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Into Cash because we paid in cash and
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this is 700 year 700 year and this is
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700 here
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and I will put the 700 down here right
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now
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then we will write the reason for this
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payment
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of salaries or whatever you want to
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write but just there must be a
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declaration
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why we did this transaction why we did
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this transaction and I won't put it like
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um 16 that would be more than enough
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highlight the Declaration to show that
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this transaction was done on gen 9 but
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the purpose of the transaction is
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payment of sellers
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that was the one which we did just now
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which we did right now we'll move into
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another slide right now and we'll see
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what after the seller's expenses
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9000 is borrowed from a bank
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when official signs and look at this
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look at this science annuits payable
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that will have to be repaid
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in several years
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uh here once we wrote we see the word
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notes payable
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when we see the word news people and you
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know notes payable is credit
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notes payable is credit
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and it's increased now it's increased
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why because I took from the bank
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nine thousand dollars that means that
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the cash is increased
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so I took from the bank nine thousand
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dollars right this is increase an asset
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because cash is an asset so you know
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when the cash increase it will be the
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bit so it's light different to the left
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when we do it in the journal entries
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it will be right different results but
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wait a minute this is not purchasing
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Goods this is I borrowed and I did
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noticeable newspaper maybe checks or a
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bit of exchange or uh promissory note
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you wrote a note on yourself
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in all the cases this is a promise that
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you will pay in a later time
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you assign it and you have don't put the
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notes payable until you see the spot
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notes payable don't put it if you didn't
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find here not spam sometimes it's part
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in which people and parts in cash but
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don't put it unless you see the word
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notes Beverly so here now sign a news
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payable that's fine that will have to be
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prepaid in the several years in several
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years gold that's fine that's very fine
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so in that case I will see that the cash
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is increased was nine thousand dollars
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because I took nine thousand from the
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bank or from where or the bank here I
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took 9000 from the bank and I put it in
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my own cash box so the cash box is
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increased so and the cash we know that
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the cash is an asset an increase in an
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asset is debit so debit will be put in a
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slight little to the left
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which is debit when I do it in the
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journal entries and
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who will be uh the credit because I see
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this word notes payable so I will write
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into notes payable into notes bevel and
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this would be increased liability or
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credit increase the liability or credit
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so it will be from cash to nodes payable
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from cash nine thousand to noticeable I
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don't say borrowing
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borrowing money from
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or Bank borrowing or borrowing money
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with notes purple this would be the
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decoration let us go and do this right
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now here
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let me do it right now here I will do it
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as a separate transaction I won't I
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don't want to put it in the same table
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here so you guys will not be confused
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I will do it a new one here in this page
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it will be a new one on this page and I
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will take the same transaction I will
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not change the transaction I will take
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the same transaction here control and c
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and I will go there right now here and
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write the control and V
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and here it is here we go nine cells let
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us say on gen 13th
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on Jan 13th
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nine thousand is borrowed and we sign a
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notes
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as long as I see this I'm reading blah
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blah blah blah blah stop here notes
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payable as soon as I see the word notes
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payable that means I borrowed because
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the thing to pay I will have to sign
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papers so once I have to sign papers
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papers then this will be part of the
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transaction this will be written in the
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transaction process so I would say here
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insert and I will do the same 4x4
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not the car like I said but this is four
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by four for the uh
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here we go sometimes you might say USANA
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why are you doing this why you should do
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it in Excel yes I can do it in Excel but
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I won't show you the position of the
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transaction how how far it happens and
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exactly this one makes you live
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like exactly you are doing the journal
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entries so this would be like uh
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right in front of you so this is from
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the cache because the cash increased and
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increases debits into a notes payable
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into notes payable control and c and
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here we've already sparable
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and slightly different to the left to
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the right sorry and here we go these are
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the nine thousand
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nine thousand is it nine thousand yeah
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and here is the 9000 as well
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and this nine thousand should be down
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cool
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then
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uh borrowing was not spell borrowing b o
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r r o w i n g with
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payable
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cool
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very cool and then the whole table I
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will just put it for 14 or 16.
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and no shadowing no highlighting
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no colors that's fine
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but I want to put what this a color so
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that with declaration only that's what I
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want to put the color and the hole is
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bold
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and like you see here now the
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transactions in front of you you can see
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it right ahead from cash into nodes
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payable and the amount is nine thousand
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uh cash is debit because the cash
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increased I took from the bank 9000 and
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I put it in the cash box and the cash is
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an asset and asset increase its debits
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increase in asset is debit like you see
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here so we put it on the cash site and
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notes payable is a liability
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it's a credit why because also we
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increase the money which we have to pay
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to the others remember the word credit
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card which means you you have to pay for
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the audience let's not say oh no or
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whatever owe no we will say what you
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have to pay for the others so it will be
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clear
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so what you have to pay to the other
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increased was nine thousand dollars it's
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increased was nine thousand dollars it
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means that you are as increased in
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liability that means this is credit and
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that's how it work from cash students
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okay came the time now for you it's your
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turn now and I will not change anything
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except the number that's it for my dear
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students I will not change anything
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except the number and in that case I
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will make it on Jan 17 and the number
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will be
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two zero twenty thousand
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and
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same transaction here I will stop for
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around
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four minutes for you to do the
00:19:08
transaction same like what I did here
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and I just want to I don't want to
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confuse you but at least you would say
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from cash to notes payable you can see
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it in front of you here now and please
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do this exercise
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okay
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this is for you guys to do it right now
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it's for you guys to do it right now the
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exercise here is for you guys to do it
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right now
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exactly like the one in front of you
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here like this one you will do it like
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this one exactly
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you would do the same but just change
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the numbers
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please don't forget to write the
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Declaration I will be here for around
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2-3 minutes before we end this lecture
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or we move to another direction thank
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you so much
00:23:16
foreign
00:24:03
foreign
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foreign
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some ideas who are back we'll do the
00:25:11
same thing here what we did here we'll
00:25:13
do the same thing but I'll just uh
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change
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control and V this will be gen 17.
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Ctrl and C this would be gen17
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B and question is payable and the amount
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is 20 000 and everything is the same
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control and C
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here it is Ctrl and V and here it is
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Ctrl NV today we learn about
00:25:42
how to pay the expenses
00:25:44
when you want to pay in the expenses the
00:25:47
seller's expenses or whatever expenses
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Into Cash
00:25:50
and like we said here the seller's
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expenses from the debit side and the
00:25:55
cash because it's reduced and reducing
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the assets will be credit
00:26:00
the second transaction we did today was
00:26:03
the
00:26:05
borrowing money and borrowing money from
00:26:08
a bank or whatever borrowing will
00:26:10
increase your cash and you know that
00:26:13
when the asset increased this is debit
00:26:16
so debit will be put in in the left side
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here into as long as you see the word
00:26:22
newspaper like we said that means that
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you have to write it here not surpival
00:26:27
in the transaction and don't forget in
00:26:29
all the cases to write Declaration of
00:26:32
what is the type of the transaction what
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was the transaction about
00:26:38
take care of yourself and see you in the
00:26:40
next lecture bye bye everyone bye bye
