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Just cant seem to get it

YZF1000RYZF1000R Just JoinedRegistered Posts: 4
:blushing: Is there anyone else who is struggling with the basic accounting?

I just cant seem to get it no matter how many times I read the books, when I do a moc exam, it's as though someone has wiped my brain, teh more I try and think the emptier my brain seems to be.

Needles to say I only just passed my basic accounting 1 exam and got my basic accounting 2 exam next week but feel totally brain dead. Failed my basic accounting moc exam last week :crying:

Give me a motorbike/car engine and can do owt with these with my eyes closed, give me a book on maths formulas and can spend hours and hours doing them, give me a chess book and I can relate to what all the positions are etc. blah blah....

Give me an accounting book and bham!!!!! - BRICK WALL

My DR & CR are nearly always the wrong way around, my cashbook would be great for someone fiddling the books cos they are always wrong, my journals are, well, crap and dont even mention bank reconcilliation and fixing of errrors

Fed up!!

Comments

  • Jo ClarkJo Clark Font Of All Knowledge Registered Posts: 2,525
    Hello YZF

    Sorry to hear the trouble you are encountering with your studies.

    Before I answer any further, are you a self study student or do you attend classes at a FE College or training provider?

    I and many other students/members would be more than happy to try and help you through this.


    JC :o
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • Clintm15Clintm15 Well-Known FarehamRegistered Posts: 247
    Hello YZF,

    I too had difficulty grasping the concepts at level 2. I self study and had no knowledge of accounting whatsoever when I began. Like yourself, the DR/CR issue was one that I particularly disliked. However, there are few little tricks floating about to help out beginners.

    One that I used was called the PEARLS rule. It's an acronym that stands for Purchases, Expenses, Assets, Revenue, Liabilities and Sales.

    You split the acronym into 2 parts like so...

    PEA RLS

    If you imaging this on a T account you will see that the Purchases, Expenses and Assets (PEA) are on the DEBIT side. This is because these types of accounts will be debited as they increase.

    Similarly, the Revenue, Liabilities and Sales (RLS) are on the CREDIT side as these types of accounts are credited as they increase.


    I found this to be a very helpful mental guide and it was instrumental in helping me overcome that initial block. Debit's and Credit's have since become second nature to me but I have this little acronym to thank for it.

    Other people have other acronyms that may help too. There are plenty of helpful people on these forums.

    I have very nearly completed my AAT journey but when I started I was exactly the same as you so don't give up.

    I hope this helps, good luck. :)
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
  • WongyWongy New Member Registered Posts: 14
    My question is how do you know what is asset, liability, revenue etc etc...I like the PEARLS but am unsure if I will know what a liability is, revenue etc etc....is there a acronym for that?
  • liveprincessliveprincess Well-Known Registered Posts: 214
    Asset is what you own, liability is what you owe
    Revenue is income mainly from sales etc.
  • vyas2210vyas2210 Just Joined Registered Posts: 6
    I was taught using the DEAD CLIC method for debits and credits and found that it helped my understanding.

    In the T account:

    Debits | Credits
    Expenses | Liabilites
    Assets | Income
    Drawings | Capital

    Debits increase Expenditure, Assets, Drawings (and credits decrease them)

    Credits increase Liabilities, Income. Capital (and debits decrease them)
  • coojeecoojee Experienced Mentor Registered Posts: 794
    Another little tip is if you can remember that bank receipts are always DR's to the bank then they must be CR's to the other side of the double entry. Similarly bank payments are always CR's to the bank so they must be DR's everywhere else. Eg a payment for insurance will be a CR to the bank so it must be a DR to insurance, a payment for a motor vehicle will always be a CR to the bank so it must be DR to motor vehicles account. That way you don't have to work out if the account is an asset/expense/liability/income account all the time.

    Note that this only works for bank and cash payments. When you're doing journals you will need to use DEAD CLIC, PEARLS etc.
  • YZF1000RYZF1000R Just Joined Registered Posts: 4
    Well dont ask me how it happend but I passed by basic level 2 exam last night. I had flagged 2 questions and 1 of those was the trial balance with suspense accounts. Trial balances with no suspense is ok, I can do that fairly confidently but then accounting for suspense accounts, I just couldnt get the figures to match up and tried for at least 20 mins just on that 1 question alone, that is why I thought I had failed, I must have then got most of the other questions correct to enable a pass.

    Its a shame that the AAT dont let you see what questions you got wrong, it just says competant or met or succeeded etc. how are you suppose to improve, for I know I may have just scraped through passing
  • RobClarkeRobClarke Experienced Mentor Registered Posts: 820
    YZF1000R wrote: »
    Well dont ask me how it happend but I passed by basic level 2 exam last night. I had flagged 2 questions and 1 of those was the trial balance with suspense accounts. Trial balances with no suspense is ok, I can do that fairly confidently but then accounting for suspense accounts, I just couldnt get the figures to match up and tried for at least 20 mins just on that 1 question alone, that is why I thought I had failed, I must have then got most of the other questions correct to enable a pass.

    Its a shame that the AAT dont let you see what questions you got wrong, it just says competant or met or succeeded etc. how are you suppose to improve, for I know I may have just scraped through passing

    I agree - better feedback would be useful in working out what areas to concentrate on.
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