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This course continues our exploration into the bookkeeping function. We introduce the concepts of single-entry and double entry bookkeeping as well as the accounting equation.  This allows us to delve into examining the concepts of how to utilize debits and credits within financial accounting including assets, liabilities, equity, revenue and expense.  It is imperative that a bookkeeper have a strong grasp on the utilization of debits and credits.

“A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry.”

“A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.”

Following is a summary of how debits and credits impact the financial statement accounts

Category

Increase Acct

Decrease Acct

Assets

Debit

Credit

Liabilities

Credit

Debit

Equity

Credit

Debit

Revenue

Credit

Debit

Expense

Debit

Credit

This session utilizes multiple examples of how to apply debits and credits within various transactions and entries and provides the participant with a foundation of the concept of how to utilize the double entry bookkeeping system.

In addition, we examine a few of the many functions the bookkeeper can be involved with as part of their overall responsibilities. 

NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation to a career as a bookkeeper. 

 

Learning Objectives

  • Explore double entry bookkeeping.
  • Identify the accounting equation and recognize how to apply the accounting equation approach.
  • Explore bookkeeping processes managed by the bookkeeper.
  • Explore the process of recording debits and credits.
  • Recognize how to apply the account debit and credit process to the balance sheet and income statement.
  • Explore example entries using typical accounts and processes.
Last updated/reviewed: November 11, 2019

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesProfessional Bookkeeping Certification

  1. Bookkeeping Basics - Critical Accounting Terminology and Effective Execution of Concepts
  2. Bookkeeping Basics – Processes and Debits and Credits
  3. Bookkeeping Basics – Accrual vs. Cash Accounting
  4. Bookkeeping Basics – Payroll and Expenses
  5. Bookkeeping Basics – Formation of a Legal Entity and Establishing a Chart of Accounts
  6. Bookkeeping Basics – Utilizing Journals, Subsidiary Ledgers and the General Ledger
  7. Bookkeeping Basics – The Essential Responsibilities of the Bookkeeper on a Daily, Weekly, Monthly and Annual Basis
  8. Bookkeeping Basics – Fixed Assets and Inventory
  9. Bookkeeping Basics – Accounts Payable/Disbursements and Accounts Receivable/Receipts
  10. Management Internal Control Essentials
  11. GAAP Principles, Assumptions and Considerations
  12. GAAP Presentation of Financial Statements
  13. Bookkeeping Basics – Case Study Scenario
  14. Useful Bookkeeping Tools

8 Reviews (18 ratings)Reviews

5
Member's Profile
Good information. For an non initiate it can be useful to draw the concepts of debit and credit to have the clear picture... but very clear...
2
Anonymous Author
This course was difficult with little to no background. The examples were unclear at times, and confusing. Lots of good information in this lecture, however it could have been laid out differently.
5
Anonymous Author
Good information for introduction to bookkeeping. A bit basic for those already earning CPE credits for the CPA license. Excellent instructor.
4
Anonymous Author
A little challenging for someone without an accounting background, but am discovering areas I should learn more about for my small business.
5
Member's Profile
This was very informative. I liked the way everything was explained and I printed out the PDF.
4
Anonymous Author
Difficult, but not impossible to understand without a finance or accounting foundation.
4
Anonymous Author
anyone that works in a business office would get the most from this course
4
Anonymous Author
This is a very informative segment on debits and credits

Prerequisites

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:33Introduction to Bookkeeping Basics– Processes and Debits and Credits
  3:29Double Entry Bookkeeping
  7:35Accounting Equation
  17:02Bookkeeping Functions
  3:52Debits and Credits
  9:58Assets/Liabilities/Equity
  13:37Examples
  1:44Summary
CONTINUOUS PLAY
  58:50Bookkeeping Basics– Processes and Debits and Credits
SUPPORTING MATERIALS
  PDFSlides: Bookkeeping Basics – Processes and Debits and Credits
  PDFBookkeeping Basics – Processes and Debits and Credits Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM