Why r sum balances always debit and others credit??

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, I have just started my training and I am doing it flexi-study and I am stuck.....can sum1 explain please in simple terms why sum balances are always debit and others credit...I am confused..

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Why r sum balances always debit and others credit??

    It depends what type of account it is. In general, expense accounts, Purchases and assets are debit balances and capital, revenue and liabilities are credit balances. It all relates to the accounting equation which is the theory that starts the whole thing off!!<BR><BR>The following acronym helped me;<BR><BR>P urchases I Revenue<BR>E xpenses I Liabilities<BR>A ssets I Sales<BR><BR>to show where to post things.<BR><BR>Annette<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Why r sum balances always debit and others credit??

    Leading on from Annette, I find the word Pearls normally helps me.<BR><BR>PEA = Debit<BR>RLS = Credit<BR><BR>Debit<BR><BR>P - Purchases<BR>E - Expenses<BR>A - Asset<BR><BR>Credit<BR><BR>R - Revenue<BR>L - Liabilities<BR>S - Sales<BR><BR>Always helped me out. I use to write it all over the place in my exams, but it paid off when i completed the foundation stage.<BR><BR>Danni
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Why r sum balances always debit and others credit??

    <br><br><< <i>Leading on from Annette, I find the word Pearls normally helps me.<BR><BR>PEA = Debit<BR>RLS = Credit<BR><BR>Debit<BR><BR>P - Purchases<BR>E - Expenses<BR>A - Asset<BR><BR>Credit<BR><BR>R - Revenue<BR>L - Liabilities<BR>S - Sales<BR><BR>Always helped me out. I use to write it all over the place in my exams, but it paid off when i completed the foundation stage.<BR><BR>Danni</i> >><br><br>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Why r sum balances always debit and others credit??

    if you check the article posted on the 19th of August, titled DEBIT AND CREDIT NIGHTMARE, you will be able to understand it better. Just remember that anything you receive is Debit while what ever you pay is credit. ie <BR>Debit receipts ( recorded on the right hand side)<BR>credit payments ( recorded on the left hand side).<BR>Pilar
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Why r sum balances always debit and others credit??

    MissL,<BR>you will find that article on the Surgery questions<BR>regard<BR>Pilar

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