How to even get started?

SLT2017

Hi All, I've recently started the course but I am struggling to get through the workbook. Any hints or tips on how to make the learning a bit more user friendly would be appreciated. Thanks

AAT_Team

Hi @SLT2017, we highly recommend that you study with an AAT training provider as this with dramatically increase your chances of completing your qualifications.

Zoynal98

Double entry bookkeeping: Fundamental rule - Every transaction has an effect in at least 2 different account.

Definitions:

Asset - Something that you own (i.e. a Car)
Liability - Something that you owe (i.e. a Loan you take out)
Income - Money made by providing a service/selling goods
Expense - Money deducted (you paid for something)

Example:

Let's say you bought a Nisan Micra (with glowing race strips on the side) costing £2,000. 2 accounts will be involved in this transaction. A Bank account (Paying by cheque for argument's sake) and an Asset account (A car is an Asset because you own it).

The double entry would be:

Asset Account (Car): Debit the Asset Account by £2,000 (paid by via the Bank account (Cheque))

Bank Account: Credit the Bank by £2,000 relating to the Car purchase (Credit on a bank account means money coming out, Debit on a bank account means money coming in)

Can you see the double entry? Credit Bank, Debit Asset. Two effects taking place for one transaction.
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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.

SLT2017

Thanks, that is actually very helpful.