How to Remember ETB

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi All,
I was wondering if anybody had an easy way of remember what goes where in an ETB. I'm really good at balancing my trial balance, but then it all goes pear shaped with the P&L, Balance sheet. Not that I'm panicing or anything! but the simulation last week was like pulling teeth and my ETB really let me down.
Thanks in anticipation
Cat :?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How to Remember ETB

    Hi Cat.

    I always bear in mind that the Trading, Profit & Loss account will contain items relating to trading i.e. sales, purchases, utility bills, etc.

    The balance sheet reflects the accounting equation:

    Assets = Liabilities + Capital

    So will contain fixed assets, current assets (i.e. debtors, stock, bank), liabilities (i.e. loans, overdraft, etc).

    Remember that stock will be a credit in P&L and a debit in BS.

    Hope this helps.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:How to Remember ETB

    Thanks for you advice Scott, I'm feeling a bit calmer now :)

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