journals

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, can anyone help me get my head around journals?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Hi, what part of journals exactly do you not understand, summary:-

    Account Type....Debit............Credit
    Assets...............Increase........Decrease
    Withdrawals.....Increase........Decrease
    Expenses..........Increase........Decrease
    Liabilities..........Decrease........Increase
    Capital...............Decrease........Increase
    Revenues.........Decrease........Increase

    The left hand column is used to show receipts and the right hand side is used to show payments.
    There is a simple rule to explain which side of the account you should list any particular transaction.
    Debit the account that receives the goods, services or money. (The receiver)
    Credit the account that gives goods, services or money. (The giver)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Hi

    i only just got my head around the jounals at Foundation level and now they have got a lot more in depth

    ie: depreciation of computers / equipment

    I struggle with which accounts to be debited or credited

    thanks for the help.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Hi

    I am glad i am not the only one - i am totally confused about Journals. :cry:

    I am stuck on how to do journals for an acquisition and disposal of vehicle - Can anyone help.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Just try and think about where you want them to be picked up from when you produce the final accounts. Bal sheet / Income statement (and how they would affect either one)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Zoe,

    Acquisitions are pretty straightforward

    Dr Fixed Asset Cost
    Cr Bank/Creditors

    I wrote an explaination of disposals which you can find here.

    Hope that helps

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    thanks Chris

    That is brilliant, I will look over it later when i have a bit more time to absorb the info.

    if i get stuck i may call on you again - hope thats ok?

    Zoe :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Feel free Zoe... although the nearer it gets to the 12th the less likely you are to get a reply :)

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    Your notes on disposal were brilliant, i did infact need the notes on Part Exchange, so you were ahead of the game!

    one more thing, if entering a purchase price of an asset into fixed asset register, do i enter the full price paid (ie with the part exchange value taken off) or the cost of the vehicle before the pe value take off.

    I will try not to annoy you again!

    Thanks

    Zoe

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:journals

    You'd put the full (ex VAT unless it's a car) price onto the register.

    You're not annoying me, happy to be of help. One of these days I'll get that wiki completely written up - I suspect we'll all be practising accountants by the time that happens though.

    Chris

Categories

Privacy Policy