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Bookeeping Transactions...double Entry!

TerriRTerriR Registered Posts: 2
Just struggling to get my head around Double Entry Accounts, Ive just started my level 2 and Level 3 and I'm on the first Bookeeping Transactions Tutorial (distance learning).

I'm just struggling with understanding debit and credit accounts and when it would fall into the right column...

Debit is money in and credit is money out?
So how do I deal with money coming out the account and being logged onto another account, so it would be credited from the bank account, but debited into another account?

£100 from the main bank account, and I need to pay £80 rent?
So I would credit the main bank account for £80 as its money going out, but debit the rent account as money going in? (but its not going into the account its going into the account that takes my rent money?

Best way to remember debit and credit?

Comments

  • Zoynal98Zoynal98 MAAT, AATQB Posts: 65
    edited April 2017
    £100 from the main bank account, and I need to pay £80 rent?
    So I would credit the main bank account for £80 as its money going out, but debit the rent account as money going in? (but its not going into the account its going into the account that takes my rent money?


    Into context:

    Paid £80 weekly rent by cheque.

    T-Account entries:

    Rent account

    Dr Bank £80 (Payment from bank)

    Bank Account

    Cr Rent £80 (Paid Rent) (Money is being deducted from the Bank this is why it is a Credit)

    Rent is an expense therefore it is Dr.
    -------------------------------------------------------------------------------------------------------------------------------------------------
    Best ways to get your head around double entry:

    PEA | RLS (PEARLS)

    Debit side consists of PEA

    Purchases
    Expenses
    Assets

    Credit side consists of RLS

    Revenue
    Liabilities
    Sales

    or;

    DEAD | CLIC (DEAD CLIC)

    Debit
    Expenses
    Assets
    Drawings


    Credit
    Liabilities
    Income
    Capital

    Hope this helps.
    BertieAAT_Teamcarleylm83
  • TerriRTerriR Registered Posts: 2
    Bless you!

    Thank you so much for that! Double Entry seems easier to understand now! I've just started the course and new to the terms etc!
    Zoynal98
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