Trial Balances

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello everyone. I studying foundation AAT and i am just starting unit 3. My double entry is ok except for the fact that i do not understand trial balances. How am i supposed to know which side it is supposed to go on and also at the bottom there is an account called suspense, what is that and how is it used. I need help please email me at iansaunderson_3000@hotmail.com or reply to this post ASAP much appreicated. Ian

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Trial Balances

    Hi <BR><BR>We have been taught to remember PEARLS<BR><BR>Purchases<BR>Expenses<BR>Assets <BR>Revenue<BR>Liabilities<BR>Sales<BR><BR>The PEA are all Debits, the RLS are all Credits. Drawings are always a Debit (remembered because it begins with D), and Capital is a Credit (remembered because it starts with C).<BR><BR>The suspense account is used to post items as a credit or a debit when the trial balance doesn't agree. It is a temporary posting place until an error is rectified.<BR><BR>Hope this helps!<BR><BR>Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Trial Balances

    Thank you very much that will be very useful for me. I wish someone could tell me why arsenal can't win anything in europe?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Trial Balances

    'cause there s**T that's why. Try changing to Chelsea

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