AAT Foundation Journals

Blonde

Hi

I really do not understand the concept of journals.

Does anybody have any revision websites, notes, or advice to post to me.

Foundation exam next week

Help

A-Vic

Hi Blonde

Journals are an accounts way of adjusting accounts - all you really have to remember you debit something to put it in and you credit something to take it out when doing journals

anniem

Welcome Blonde!

Journals are tricky for everyone to begin with, in fact, as you work through the whole syllabus you will encounter things that constantly tax your brain. It's why you're studying.

What Vic says is spot on, but to try and elaborate:

If you take money out of the bank and spend it on repairing a car, you have done two things:

a) reduced the bank balance
b) increased the amount of money spent on the car

Therefore you need to

a) debit the bank account
b) credit car repairs

So, for every transaction that the business makes, there are always at least two consequences. One positive, one negative.

If you break it down further it becomes more elaborate, because contained within the car repair there is probably an element for VAT, this would also affect the VAT account, so you would split this out too.

I think you need to get to grips with the concept before making it more complicated at the moment though.

Hope this makes sense!

Anna

A-Vic

Blond if you log on to your aat there is a link for e-learning i used this and it has a fantastic explantion for jounals and t-accounts