In the last lesson you got a light introduction to debits and credits. In this lesson, we’re going to look at more of those T-Accounts in my Google Sheet. You’ll notice in this video, that I’ve made some of the most gorgeous T-Accounts I’ve ever seen (if I may say so), and I’ve added a balance check to be sure we’re balanced.
In the last lesson, you were linked to the T-Accounts Template.
The link is provided in the Slack Team channel for this course.
IMPORTANT! Do not click on the second tab until after you’ve gone through the exercise. The only person you are cheating is yourself 😉
Here are 5 transactions for us to record in the T-Accounts.
- Contribute $1,000 into the company bank account
- Invoice a Customer for $5,000
- Receive payment in full ($5,000) on the invoice and deposit into the bank account
- Enter a Bill for $500 to pay a vendor
- Pay the bill
Watch the video and see how this works.