Debiting & Crediting Daybooks

Hi All,

I sat my first exam (Bookkeeping Transactions) last night and am thrilled with a 93% score. However, I have to admit that I’m not fully understanding debits and credits. I found the PEARLS acronym so useful for debiting and crediting the general ledger and am curious to know if there’s something similar or a method for determining it when it comes to the daybooks etc.

Thanks,
Kirsty

Comments

  • Pian32
    Pian32 MAAT Posts: 471
    If you feel confused on whether something is a debit or credit then condsider yourself as a middle man and any funds (whether cash or credit or representative) have to pass through you. If you take/receive from somewhere it's a credit and if you give its a debit.

    Take paying a bill: You take from your bank (credit) and give it to either the expense (if bought outright) or the purchases control (if paying an older invoice) which is your debit.
    AAT Level 4, MAAT
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    kiki_w
  • kiki_w
    kiki_w Registered Posts: 5
    > @Pian32 said:
    > If you feel confused on whether something is a debit or credit then condsider yourself as a middle man and any funds (whether cash or credit or representative) have to pass through you. If you take/receive from somewhere it's a credit and if you give its a debit.
    >
    > Take paying a bill: You take from your bank (credit) and give it to either the expense (if bought outright) or the purchases control (if paying an older invoice) which is your debit.

    Thank you so much for explaining that.
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