Credit and Debit balances on SAGE
Hello I'm really confusing myself with credit and debit balances on SAGE for customers and suppliers and was wondering if anyone can help me please and confirm if the below is correct?
Customer Account
DEBIT balance = THEY OWE US
CREDIT balance = WE OWE THEM (CUSTOMER OVERPAID, PAID TWICE, DISCOUNT ON GOODS BEING APPLIED AFTER INVOICE IS SENT TO CUSTOMER
Suppliers Account
DEBIT balance = THEY OWE US - WE MAY HAVE MADE A PAYMENT ON ACCOUNT
CREDIT balance = WE OWE THEM, may have overpaid or paid twice or a missing invoice
Customer Account
DEBIT balance = THEY OWE US
CREDIT balance = WE OWE THEM (CUSTOMER OVERPAID, PAID TWICE, DISCOUNT ON GOODS BEING APPLIED AFTER INVOICE IS SENT TO CUSTOMER
Suppliers Account
DEBIT balance = THEY OWE US - WE MAY HAVE MADE A PAYMENT ON ACCOUNT
CREDIT balance = WE OWE THEM, may have overpaid or paid twice or a missing invoice
0
Comments
-
That sounds correct.
If you remember that Assets are Debits, and Liabilities are Credits, it should help keep it straight in your mind.
If you’re owed it, it’s an asset. If you owe it, it’s a liability.0 -
Hi lozza10,
I think that's correct how you did, you should add discount received on Supplier Account debit balances. Therefore, On Supplier Account credit balances should be missing invoice or overstated invoice or record twice invoice or recorded invoices not the paid (payment) invoices.
Customer Account:
Debit balances increases assets
Credit balances decreases assets
Supplier Account:
Debit balances decreases liability
Credit balances increases liability
RAKTHER
Training Coordinator, Osborne Training.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 321 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership