Foundation Level, and struggling!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,<BR><BR>I'm really having problems at the moment with these bloody sales and purchase ledgers. I just can't for the life of me remember which side of the accounts things have to be posted to. I know this probably sounds really stupid, but it i am finding this really hard. I'm in a job, where i don't do anything to do with accounts, let alone numbers, so i think this may be why i'm struggling a bit. So please if anyone can help me come up with a way of how to remember which side things get posted to it would be a help.<BR><BR>Appreciate your advice<BR><BR>Emma

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    Hello Emma,<BR><BR>Are you getting confused because you're confusing them with Sales and Purchases accounts or is it just that you don't know what side to post to within the ledgers?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    I always find that if you know where things go in the bank you can work everything else out. As far as the Sales and Purchase control accounts, get used to calling them Debtors control and Creditors control which reminds you which side things go on in those accounts.<BR><BR>Also the acronym PEARLS helped me, Purchases, expenses and assets on the debit side and revenue, liabilities and sales on the credit side.<BR><BR>Believe me there will come a time when you won't even have to think about it as it will be instinct!!<BR><BR>Good luck<BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    Use the PEARLS as said but remember that S is also share capital as well as sales
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    Hi,<BR><BR>You really need to get some practical experience. The government have changed the Modern apprenticeship scheme so that you can do your AAT or Finance related course for free as long as you are in Full time employement doing a finance related job and you are between 19 and 25.<BR><BR>So try to get a job as a Finance junior somewhere and tell your prospective employer that the course is free so they dont pay a penny!!!<BR><BR>I am doing my foundation exam this tuesday and I am very confident because I work as an Accounts Assistant and my job involves things related to intermediate and technician level, therefore I am well ahead of myself.<BR><BR>If you need any help getting a Finance job let me know as I have loads of contacts with recruitment agencies and I work for a large company.<BR><BR>As said, get used to calling Sales Ledger & customers DEBITORS.<BR>Suppliers and Purchase Ledger CREDITORS<BR><BR>when you post the sales invoice you:<BR><BR>DEBIT debtors control account<BR>Credit Sales<BR><BR><BR>When your Debtor (customer) pays you, you:<BR><BR>DEBIT bank<BR>Credit Debtors control account<BR><BR>When you receive an invoice, you:<BR><BR>CREDIT Creditors Control<BR>Debit Purchases<BR><BR>when you pay your creditors, you:<BR><BR>CREDIT bank<BR>debit Creditors Control<BR><BR>i.e when you send an invoice to a debtor you debit the debtors control account and when they pay you debit the bank.<BR><BR>when you receive an invoice from a creditor you credit the creditors control account and when you pay you credit the bank.<BR><BR><BR>Hope this helps<BR><BR>Simone<BR><BR> <BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    Emma<BR><BR>I was like you and couldn't remember which side to post things on - so I used to go on<BR><BR>Assets and expenditure (on the left ) and Income and Liabilities (on the right)<BR>I used this until somebody introduced me to PEARLS - but to be honest I still find the above quicker.<BR><BR>Good luck with your exam - I'm sure you'll be fine.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    I know this sounds silly, but we were told<BR><BR>With the correct answers you REAP the reqards, otherwise, you'll get a RIGHT SLAP<BR><BR>Receipts Sales<BR>Expenses Liabilities<BR>Assets Accruals<BR>Prepayments Payments<BR><BR>Then ,you need to remember is that you Drive on the left (Dr) and Crash on the right(CR)<BR><BR>Now you can extend on your Reap and Slap<BR><BR>Receipts (ie Money in) Sales<BR>Expenses (ie Purchases) Liabilities ie Creditors, Capital, Purchase <BR> Ledger Control/Creditors etc<BR>Assets (ie Motor Vehicles, Accruals<BR>Debtors/Sales Ledger Control etc) Payments (Money Out)<BR>Prepayments<BR><BR><BR>Is that any good for you??<BR><BR>Take Care <BR>and have faith - The light at the end of the tunnel is not an express train on collision course- I promise<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Foundation Level, and struggling!!!

    Huh, for some reason this silly forum missed my credits off<BR><BR>S= Sales<BR>L= Liabilities (eg Creditors/ Purchase Ledger Control, Capital etc)<BR>A= Accruals<BR>P= Payments (rather self explanatory)<BR><BR>Can't really go into accruals for you as we were told to forget about 'em for now as we don't need to know about em for Foundation<BR><BR>Must try to get more practice posting!!

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