Accounts Prep1 T accounts help :)

carriecusick

hi everyone , i need some help when posting trasactions to T accounts. I know generally what to do but it does not come naturally and takes some time! Is there an easy way to remember how to do them? They just seem to confuse me completely. Thanks!

welshwizard

Hi there

You're not the first!

You must remember that you're not just posting to accounts but that you're also increasing or decreasing the value of an account - whether it is an income or expense, or asset or liability.

This may help you with your problem.

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As an example, if we take the Expense category, a debit increases its value whilst a credit decreases its value. So an expense prepayment at the end of the year requires us to 'move' the prepayment from this year into next year (reducing the value of this year's expense whilst also increasing next year's expense figure).

Assets also increase with a debit and reduce in value with a credit.

Income accounts (and liability accounts) increase in value with a credit and decrease with a debit.

I really hope that this helps.

Good luck!

Welshwizard:tongue_smilie:

James Patterson

Hi,

I tend to remember two good rules, which may help.

1. The acronym PEARLS helps me remember DR & Cr initially.

Purchases, Expenses & Assets are Dr.
Revenue,Liabilities & Sales are Cr.

2. The second is simply how purchases and sales balance out.

Dr Purchases (£10), Dr Vat(£2), Cr Purchase ledger control(£12)
Cr Sales (£10), Cr Vat(£2), Dr Sales ledger control(£12)

Generic rules help me as they apply to all situations so i am trying to work out some more for others scenarios.

Hope this Helps!

carriecusick

Apologies for the late reply, have been revising very hard. Thank you so much for the info it has really REALLY helped . I have my exam on Tuesday, do you have any tips? And again thankyou so much!!!

Carrie

James Patterson

In terms of double entry if you don't know which side it goes on, magic of the phrase is you can think which side it will be on in the other account and reverse it.

Also just look to make sure things balance especially on your Extended trial balance! And if it doesn't by such a figure hopefully it is just the one and you can swap it over to get your balancing figure.

Otherwise just remember everything you've been taught i guess.

Best of luck!

carriecusick

Thankyou James

Can anyone tell me an easy way to remember what to put in IS and SFP when extending the trial balance? and anytips on accruals and prepayments?

Thanks

James Patterson

I think the main thing to remember if you know your stuff, is that Income statement is Expenses(Dr) and income(Cr), and your SFP is your assets(Dr) and liabilities(Cr), so if you carry your initial trial balance over as your debits and credits on there don't change other than our adjustments which you make.

I'd focus mainly on your adjustments as it was the hardest bit for me as i remembered all my Dr & Cr.

Accruals being a Cr and Prepayment as Dr - I don't have any clever ways of remembering it other than that really.

carriecusick

Thankyou,

I'm feeling more confident now than i was. My exam is tomorrow so we will have to wait and see.

Fingers crossed!

James Patterson

Well best of luck

carriecusick

sorry it's been a while to reply. I passed Thanks All!!

GemmaS

Well done! I'm sitting AP 1&2 on the 28th July.... eeek! I think i'm ok with AP1, (ish) but have hardly looked at AP2 so feeling a bit nervous as I've got 16 days to get up to revise AP1 and learn everything for AP2! I'm beginning to wonder why I decided it would be a good idea

tillyjbc

In kind of same boat as you GemmaS - have AP1 tomorrow and AP2 Thurs. Have been concentrating so much on AP1 (never enough I know!) that I don't feel at all confident on AP2......Good Luck!

liveprincess

HI GemmaS how is the revision going? I have AP1 on thursday, then I will start studying for AP2. Tillyjbc good luck and could you let me know if AP1 was hard.

GemmaS

tillyjbc wrote: »

In kind of same boat as you GemmaS - have AP1 tomorrow and AP2 Thurs. Have been concentrating so much on AP1 (never enough I know!) that I don't feel at all confident on AP2......Good Luck!

Good luck for your exams! and let us know how you get on especially AP2 :S
I know what you mean! I now feel fairly confident with AP1 but partnerships and goodwill in AP2 are still not straight in my head.... I don't think I've really given it enough time.

liveprincess wrote: »

HI GemmaS how is the revision going? I have AP1 on thursday, then I will start studying for AP2. Tillyjbc good luck and could you let me know if AP1 was hard.

Good luck for Thurs! Revision has been hard work.... I've been working full time then putting in 5+ hours in the evening as well.... I'm exhausted and looking forward to having these 2 exams over with! I don't feel very confident with AP2 yet. I know I have a week and a half still, however I'm away from sat to weds so won't be able to get as much studying as I would like..... :S

Bad planning on my behalf!

Which unit will you both be doing after AP1&2?

liveprincess

HI I still have AP 2 to do which Im planning to get done by end of August and in September I'm doing Indirect Tax. What about you, what are you going to do next? Good luck with your studying for AP's.

GemmaS

Hi, thanks!!!!

I've got Cost and Revenues next...... that unit sounds a bit of a challenge I'm away for most of August so probably won't start studying CRS until I get back in the last week. Don't really want to have a break from studying but need the space in my suitcase for shoes! ;P

tillyjbc

Hi GemmaS and liveprincess
Passed AP1 today - very similar to the 2 practice CBTs on AAT website! Trying to get stuck in to AP2 for exam tomoz, feel I haven't really done enough.....will let you know!

liveprincess

Congrats and good luck for tomorrow. I'm sure you'll be fine

GemmaS

Well done for passing AP1! good luck for AP2 I'm sure it'll be all good

liveprincess

I passed AP1 today, how did the AP2 go tillyjbc?

GemmaS

Well done! how was it?

liveprincess

I thought it was ok actually, similar to the mock one on AAT website. AP2 here i come

tillyjbc

Hi GemmaS and liveprincess
AP2 is so similar to the AAT CBTs so if you are OK with those, you'll be fine. Good Luck for the the 28th Gemma and for August? for you liveprincess. On to Costs and Revs next - a break with some sun first would be good! Would it be a bit sad to take my books camping in France in August? Yes...perhaps!!!

GemmaS

Well I was planning to take my books to Greece with me! Have thought about it since and think that shoes and clothes would be the better way forward, especially as I never seem to have nearly enough luggage allowance! I do think it is good to chill out for a while and refresh. I don't know about you 2 but I have been slogging my guts out in the last month at work and studying these 2 units; I could REALLY use a couple of weeks away from it!

Where about's in France are you going? I'm going camping this weekend for 5 days with some friends and our children.... fingers crossed the weather holds out in the New Forest! France is a much safer bet for sunshine though

tillyjbc

Camping just west of Bordeaux - we went camping a couple of weeks ago in New Forest. Red Shoot near Lyndhurst - had a great time! Enjoy, and no, you're right - leave the books at home and don't feel guilty!!!!

GemmaS

Sounds good, Bordeaux is lovely.... have you been there before? I love France; we were in the Dordogne last year.... the only problem is I tend to put on far too much weight there.... my obsession with cheese and bread has a field day when over I step over the stream separating us

We're off to Hollands Wood in Brockenhurst at the weekend. Fingers crossed the weather will be good, however won't mind too much as have as will probably get far too much sun for my red hair and fair skin when i'm away in August!

After that is back to the grindstone and studying lots

Gemma

liveprincess

I took books with me once to the seaside with a strong intention of revising to my big exam at uni. I used them quite a lot actually.... they made a great pillow :laugh: