AAT Foundation Homestudy Coding Help

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hi,

Can anybody help me understand coding as i am trying to do an assignment and i have read my tutorial book and still don't understand. I'm doing Foundation homestudy with premier training.

Gemma

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Foundation Homestudy Coding Help

    Coding is basically a shorthand for different acounts. eg codes for
    bank account
    vat account
    supplier accounts
    customer accounts

    You might have 100, 200, 300, etc. (ie a unique number for each separate account.)

    You will probably use them in your DayBooks and Return Books, analysed Cash Books, etc. (at the bottom with the totals, and either Dr or Cr).

    If you have been given a set of accounts in ledger format, then they may have the coding numbers already set up for you.

    They are very useful when you start using Computerised accounts software.

    They are also used in Unit 4 (Management Accounting) when assigning Costs/Expenses and Income to a particular department of the business. (The business will have designed its own system for this - in the 'Policy Manuel'.)

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