Bookeeping Transactions...double Entry!

TerriR

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?

Zoynal98

£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.

TerriR

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!