lost in t accounts

heidi

hi there im new to this so bare with me. i really need in laymans terms, i just dont understand what goes were in t accounts. sales,main,vat,cash accounts i get why we need them is just puting the right figures on the right side. any help would be greatful thanx :crying::001_unsure:

heidi

lost in t accounts

hi im new to all of this so bare with me. im at lincoln college studying foundation aat accounts really enjoying it at the mo and want to do well but im starting to struggle. t accounts is really getting me down at the moment im struggling with which side of the account do you put your figures dr/cr i understand which accounts are what like vat,sales,sales return,main ledger,subsidery accounts. any help or advice would me most greatful at the moment as i have an exam next week. thanx h:001_unsure:

welshwizard

Remember these two words - DEAL & CLIP

DEAL (left hand side)

Debtors - People who owe us money
Expenses - Bills, Purchases, Sales Returns etc
Assets - Fixtures & Fittings, Cars, Property etc
Loss - on Profit and Loss account

Increase value on the left, decrease on the right

CLIP (right hand side)

Creditors _ People we owe money to
Liabilities - Loans
Income - Sales, Purchase Returns, Rent received etc.
Profit - on Profit & Loss account

Increase value on the left, decrease on the right

Westfalianlover

Hi,

This was something i struggled in at first as well. I've always been told you Debit your Purchases and Credit your Sales. I hope this helps.:001_smile:
It got it to click with me:001_smile:

heidi

thanx alot for the help. ive got a mini exam in a fortnight and im bricking it because i know that the t accounts side is going to let me down. thanx muchly xxxx

Westfalianlover

Your welcome:001_smile:. You will be ok, its just practice, thats what i found really helped. The more i done it the easier it became.

Your exams are early, did you start in september? I started the foundation course this september.

Hope it works out:001_smile:

heidi

hi

hi there again how ya doin?

my exam is really a skills test but i really wanna do well thats all because they go in our portfolio.

i started in september at lincoln college were are you?

hope to speak to ya soon xxxxx heidi:thumbup::001_tt2:

Westfalianlover

Hi,

I'm good thanks. Its all nerve wracking, I started in September as well. I'm studying in Essex. Its gots to be done for the kids:thumbup1:

Hope your doing ok/:001_tt2:

Lilyflower

welshwizard wrote: »

Remember these two words - DEAL & CLIP

DEAL (left hand side)

Debtors - People who owe us money
Expenses - Bills, Purchases, Sales Returns etc
Assets - Fixtures & Fittings, Cars, Property etc
Loss - on Profit and Loss account

Increase value on the left, decrease on the right

CLIP (right hand side)

Creditors _ People we owe money to
Liabilities - Loans
Income - Sales, Purchase Returns, Rent received etc.
Profit - on Profit & Loss account

Increase value on the left, decrease on the right

I've seen something very similar to this...

DEAD CLIC

D - Debtors
E - Expenses ALL ON THE DR SIDE
A - Assets
D - Drawings

C - Capital
L - Liabilities ALL ON THE CR SIDE
I - Income
C - Creditors

This stands for any INCREASES (i.e. an increase in a liability is a Cr to the liability T account, an increase in an Expense is a Dr in the expense account),

therefore when things DECREASE the saying is swapped to CLIC (Dr) DEAD (Cr).

Lily xxxxxxxxxxxxxxxxxxxxxxxxxxxxx