Same amount in Debits and Credit side!!!

Hi

Wonder if anyone can help. I started AAT foundation in September but my college isnt the best. We only done two lessons of credits and debits and we've moved on and I still dont understand it. Got a ''exercise'' off a different teacher (ours has gone off sick) I have a account which within a month has transactions:

Silky shirts account.
Credit Sales 15,000 - Debit Silky shirts 15,000( bought stock off me on credit)
Credit bank 15,000 Debit bank 15,000(he paid for the stock her bought off me)

Now when am coming to do my trial balance both sides are 15,000 so I don't have a c/frwd amount as they both match when I input it to my trail balance do I just not add with them being the same so really its a zero balance or put 15,000 on both debit and credit side!
do I miss it off the trail balance or not???

Thanks x

Comments

  • coojeecoojee Experienced Mentor Posts: 794Registered
    Hi

    Is your 2nd transaction correct? Shouldn't it be:

    DR Bank and CR Silky Shirts? (And not DR Bank, CR Bank)

    That would give you balances for the TB of:

    Bank DR 15,000 and
    Sales CR 15,000

    So your TB balances. Silky Shirts account is zero as they don't owe you anything now.

    coojee
  • blobbyhblobbyh Font Of All Knowledge Posts: 2,415Registered
    Silky shirts account.
    Credit Sales 15,000 - Debit Silky shirts 15,000( bought stock off me on credit)
    Credit bank 15,000 Debit bank 15,000(he paid for the stock her bought off me)

    Coojee is correct as is your original entry:
    Credit sales £15,000
    Debit Silky Sales Account £15,000

    The second entry should be:
    Credit Silky Sales Account £15,000 (thus reducing the amount owing to zero)
    Debit bank account £15,000 (money in the bank is always a debit, money out always a credit)

    I wouldn't worry too much about learning debits and credits in isolation as once you start to use them in context (such as the above) you'll pick them up much quicker. You also mentioned on your other thread about being out of your depth: as frequently noted by others, trust me you aren't - we were all there once upon a time - and it'll all click into place one day soon without you really even realising it.
  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    Just to reiterate what blobbyh has said, one day it will click. I remember when I was studying foundation and similar to you I was confused with debits and credits, then all of a sudden I could do it!

    I'm sure you've seen all of these already, but HTH:

    PEARLS

    Purchases - DEBIT
    Expenses - DEBIT
    Assets - DEBIT
    Revenue - CREDIT
    Liabilities - CREDIT
    Sales - CREDIT


    DEADCLIC

    DEBIT
    Expenses
    Assets
    Drawings
    CREDIT
    Liabilities
    Income
    Capital
  • KrazysuebooKrazysueboo New Member Posts: 7Registered
    Hi All

    Yeah that was a typo not even getting it right when asking for help lol. So I would just miss the zero balance off my trail balance as it ''wouldn't matter''. I can't wait for it to ''click'' as it frustates me when I get them right one time and then get it wrong another. I suppose I should just keep saying the words Pearls, Deadclic etc over and over! I use the Pearls one all the time but I can only do it when I think of all of them and if there debits as the top letters are debits bottom are credits.

    Thanks for your help and hopefully ill be able to get the hang of it soon x
  • dobbieobbydobbieobby Well-Known Posts: 231Registered
    Krazysue, I 100% agree with Blob, debits and credit had me in tears at one point! Now they just come naturally without thinking. Trust me, one day it WILL just click into place.
    Take a look at a P&L account and a Balance Sheet, see what's credits and what's debits on there, try to learn now but writing them all out over and over again. (You'll need this anyway, so you'll have a head start!)
    The biggest thing to remember is ALWAYS debit Debtors, ALWAYS credit Creditors (unless there's payment involved)
    Also, I got in the habit (and still use it now) of saying what's going IN and what's going OUT.
    i.e.
    We make a payment to a creditor of £500.
    This goes OUT the bank, so it must go IN creditors.
    DR Creditors
    CR Bank.
    Good luck :-)
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