double entry book keeping [Archive] - AAT Discussion Forums

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loris

05-11-04, 01:00

please can anyone offer advise on getting my head round double entry book keeping i have never done accounts before and it's doing my head in can't seem to get to grips with it any advise would be greatly appreciated

terija

06-11-04, 01:00

HI loris The way i remebered which side to put things on was to look at every thing as money coming in or out Money in DR Money out CR For example Cash sale Â£50 DR Cash Â£50 (IN to cash account) CR Sales Â£50 (OUT of sales account) Credit purchase from D smith of Â£100 DR Purchases Â£100 (IN to purchases) CR D Smith Â£100 ( OUT of D Smith) Hope this helps Teri

Littledoe

08-11-04, 01:00

The way I remeber DR and CR is as follows D ebtors E expenses A assets R royalties C creditors L liabilities I income P provision IE DR is the word Dear and CR is the word Clip Hope this helps. This was the only way I could get my head round it! Littledoe

loris

10-11-04, 01:00

THANKS FOR THE ADVISE IT WAS GREAT

trainee

24-11-04, 01:00

D Debit E Expenses A Assets D Debtors C Credit L Liabilities I Income C Capital Therefore DEAD = Subsidiary (Sales) Accounts Sales Ledger Control Accounts CLIC = Subsidiary (Purchase) Accounts Purchase Ledger Control Accounts IN OUT Purchase Account Sales Account Purchase VAT Sales VAT I hope this helps. Im doing foundation and intermmediate in ONE year!!!!!!!!!!! look at bank and cashbook as in/out

peugeot

28-11-04, 01:00

Sorry to reply a bit late (hope its not too late!!). It took me ages to get my head round debits and credits but I agree the with "DEAD" formula that was presented in an earlier post but another way of possibly remembering it is PEARL Purchases Expenses (profit & Loss) Assets (balance sheet) DEBIT Revenue and Liabilities CREDIT Being P urchases E xpenses A ssets R evenue L iabilities Hope this helps.

Carley

07-12-04, 01:00

yet again a bit late, but the way that i have been taught is RECAL;- R evenue Credit E xpenses Debit C apital Credit A ssets Debit L iabilities Credit The only way in which i find that i can work out which accounts to use it to work out what they are! I.e Stationery is an expense so you would debit the Stationery account, because at some point you would have to pay for it (unfortunately) so you would credit the bank account because with every debit is a credit and so on! Best of luck with the courses!!!! Carley x

heathernaughty

15-12-04, 01:00

Hi I am doin AAT foundation, and i strugglin to get my head round debits and credits! I am learnin it same as Terri. Money comin in is debit(IN) money goin out is credit(OUT), but when i'm presented with the questions, and have to put em in the rite ones i struggle to remeber where things go! Is this just a practice thing (i certainly hop so!) Heather

sheffsal

31-12-04, 01:00

I found PEARLS to be a great help - dr - Purchases, Expenses, Assets cr - Revenue, Liabilities, Sales Also, try to think it all around the cash book - the account entry is the opposite of the cash book entry eg cash book dr = money in, cr = money out. Therefore if you buy something, it's going to be dr purchases, cr cash book etc etc. We all learnt dr/cr blindly for a few months until the cash book came into the equation - then it all made much more sense.