Trial Balance & DEAD CLIC

sillycow123

Hi all this is going to seem like such a simple question! I have just started AAT level 1 bookkeeping and have been told to memorise DEAD CLIC. When working out trial balance you separate debits/credits. SLCAs is a debit and PLCA is a credit. Right totally get this but looking at DEADCLIC surely sales is an income (and would be on Cr side) and purchases are an expenditure (so should be on debit side?!)
Helpppp !

P.S please excuse my handwriting I wrote it for someone else upsidedown lol

Adele69

Not sure I follow what you're asking. In your answer above looks okay
DEAD (Drawings, Expenses, Assets = Debit) CLIC (Capital, Liabilities, Income = Credit)

Sales 47140 (Income - Cr)
Purchases 2650 (Expense - Dr)
SLCA 7640 (Asset - Dr) aka Trade Receivables or Debtors/Customers
PLCA 4320 (Liability - Cr) aka Trade Payables or Creditors/Suppliers

RebekahB

Yes your correct
Sales is a credit as its income
Purchases is a debit as well stay expenditure

SLCA is always a debit
PLCA is always a credit

Sales returns is a debit
Purchase returns is a credit
Etc

gemma89

I know what you mean - Are you thinking Sales ledger CA should be on the credit side as sales are income? That is what I thought too.

So why is sales ledger a debit? Where does the money come from and totals that go in the sales ledger.

gemma89

Sales returns is a debit because we have sold something and it is being returned so that is an expense for us - Is that correct?

daniel_123456

Sales ledger control account is an ASSET because it is what we are owed by our customers. If it was a credit balance, it would indicate that we owe the customers money.
SLCA will be a debit unless it is stated otherwise.

Purchase ledger control account is a LIABILITY because it is what we owe to our suppliers. If it had a debit balance it would indicate that our suppliers owe us money.
PLCA will be a credit unless stated otherwise.