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Petty cash and Cash book

Hi everyone,

Looking through my AAT book and a little confused on whether to make the entries a debit or credit.

Petty cash credit side - debit or credit the appropriate account in the general ledger?
Cash book debit side - debit or credit the appropriate account in the general ledger?

Thank you

Best Answer

Answers

  • AC88AC88 AAT Student Posts: 44
    edited April 2017
    Hi,

    The best way to look at it is using a way to remember what they should be and work from that, I know a lot of people use 'DEADCLICKS'. Personally I use 'PEARLS'
    • Debits:
    • Purchases e.g. Purchasing inventory
    • Expenses e.g. Travel Costs, Admin Costs
    • Assets e.g. Cash, Bank Balance (if not overdrawn), Trade Debtors
      • Credits:
      • Revenue e.g. Bank interest received
      • Liabilities e.g. Loans Payable, Trade Creditors, Bank (if overdrawn)
      • Sales e.g. Cash Sales
      Acronyms help a lot when it comes to double entry.

      Does this help?
  • taralouisetaralouise Registered Posts: 16
    Hi yes this helps...

    PEARLS seems a good method to use when trying to remember where the debits and credits go.

    Thank you very much
  • taralouisetaralouise Registered Posts: 16
    Hi Alex

    That's fantastic and really helpful - I think I have got it now.

    I have been having a little trouble getting my head around the cash book in particular but have just sat my synoptic exam for level 2 so fingers crossed I have done ok :)

    Thank you!

    Tara
    AminoAlex
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