Extended Trial Balance Help Needed Desperateley / Reassurance

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Please can soneone help me. I just can't seem to get my head around the accruals, prepayments and depreciation when doing an extended trial balance. Does somebody incredibly helpful out there have any ideas on how to remember how and where to put everything. I do get it right in the adjustments column but not when transferring to the P&L and BS with DR/Cr malarky. Please if you can offer any advice, it will be greatly appreciated. I am starting to feel incredibly dense as it takes me so long to work out the Cr/Dr, I do get there but feel as though I should be quicker at this stage of the course, and do not feel confident in answering the tutors question's in class as all eyes are on me, and I rush the answer to stop everyone focusing on me and get it wrong, which then makes everyone else in the class think I'm dense also. Has anyone got any kind words for me :-(

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Extended Trial Balance Help Needed Desperateley / Reassurance

    Hi Chill.

    Items that appear on your Trading, Profit & Loss are all concerned with trading, i.e. sales, purchases, etc.

    The Balance Sheet reflects the accounting equation, i.e. Assets = Liabilities + Capital.

    If it's a debit entry on the T.B. it will be a debit entry further on, and vice versa.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Extended Trial Balance Help Needed Desperateley / Reassurance

    That makes it sound so simple, why am I getting it so wrong, maybe I'm just not cut out for this course :cry:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Extended Trial Balance Help Needed Desperateley / Reassurance

    Hi Chill.

    It's just a question of understanding why things go where they do.

    Accruals are a Liability, Prepayments are an Asset so they go on the B/S.

    The yearly Dep'n figure is a charge against profit, so goes on the P&L, whereas the Accumulated Dep'n is a reduction in the value of the Asset, so goes on the B/s.

    Once you've understood the basics, things will start falling into place.

    Scott.

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