Home For AAT student members AQ 2013 AAT Level 2 (Level 5 in Scotland)

Correct 'details' for double entry? And does it matter?

JammyMattJammyMatt Just JoinedRegistered Posts: 2

I've just started self studying Level2, and have gone through BA1, and just finished BA2 - BPP books. I decided to buy a workbook for each module for the extra practice, and bought these from Osborne (abit cheaper than BPP, and i wanted to see if there were much differences between the two).

Anyway, I noticed something strange.

In BPP when posting stuff in the general ledgers, under 'details' you write the name of the general ledger account that the other side of the double entry is made.

EG. when posting from the sales day book (with a business without VAT), you'd post in the Sales Ledger Control Account an entry along the lines off 'SALES £100' on the debit side. Then in the Sales Account you put 'SALES LEDGER CONTROL £100' on the credit side.

However, in the Osborne workbook, instead of writing under details the opposite double entry account name you write the book of prime entry the posting is a made from. So, in the Sales Ledger Account you put 'SALES DAY BOOK £100' on debit side. In the Sales Account you put 'SALES DAY BOOK £100' on the credit side.

So my question is, which one of these is the correct way to do things, or doesn't it matter? Is it more a company policy type thing, where its done slightly differently depending on the company? Most importantly, are there any questions where you have to make actual entries in General Ledger accounts in the assessment, and what is the correct way to do this?

It's the first thing I've come across in level2 that's left me a bit unsure :001_unsure: Thanks


  • RobClarkeRobClarke Experienced Mentor Registered Posts: 820
    I am sure someone will correct me on this one but as far as I can see then the 'details' usually help in cross-referencing/ posting and therefore saying what day book the entry refers to would be the 'better' choice??
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Yep that's my understanding too; the details is a 'free-text' area if you like to help identify the transaction. I would tend to agree that entering the SDB reference would be more helpful as it contains more detail, but ultimately it will be down to the procedures of the company you're working for. As long as there's sufficient info to trace the transaction you should be okay (I guess if you entered the opposite account entry it's a nice check that you've done your double-entry, and as it's posted to the sales account you would know to look in the SDB for that date for more details anyway).

    In computerised accounting the records contain both the account number posted to and a separate details section, so you get the best of both worlds...
  • JammyMattJammyMatt Just Joined Registered Posts: 2
    Oh i see. I'll perhaps note down both the BOPE and the opposite account entry then for the time being.

    Thanks for replies :thumbup1:
  • steve2008steve2008 Feels At Home Registered Posts: 89
    I've Just taken the first practice test for BA2 on this site and checked my answers.

    The answers showed the GL accounts posted in the details box, not the book of prime entry.

    Hope this helps.
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