Main Ledger & T accounts - Dr & Cr

System

Hi All

i wonder if anyone can help me

when i use the main ledger or T Acounts

how do i know what to put in the the Credit Side and Debit side?

i understand Pearls stuff ect

but when i have been studying in class i a bit baffled .

please can anyone help ............

awaiting a reply

cheers

System

Re:Main Ledger & T accounts - Dr & Cr

Hi there.

Debits and credits can be a confusing issue and you are not on your own. It took me years to master the art!!

The best way to remember them is by using the PEARLS method. In usual cases, debits and credits usually relate to the balance sheet/profit and losss. for example, if a company buys an item of stationery, the entry would normally be credit cash, debit office expenses. Similarly, if it sells something, the entries would be debit debtors, credit VAT, credit sales. I do not know if there are ways students remember how to debit/credit other than the PEARLS/DEADCLIC way but I am sure if there is an easier way to remember there will be people who will help you.

Good luck
Steve

System

Re:Main Ledger & T accounts - Dr & Cr

Can someone explain PEARLS etc to me. I get really confused doing T accounts and I get no tuition.
Thanks

System

Re:Main Ledger & T accounts - Dr & Cr

debit side Credit side
P E A R L S
Purchases Revenue
Expenses Liabilities
Assets Sales
Hope that helps - its hard to show a T Account on here!

System

Re:Main Ledger & T accounts - Dr & Cr

Hello K, I don't know much about Dr's and Cr's sorry!

System

Re:Main Ledger & T accounts - Dr & Cr

thanks that helps a lot

System

Re:Main Ledger & T accounts - Dr & Cr

Easiest way to remember it

DEAD and CLIC

Debit Credit
Expenses Liabilities
Assets Income
Drawings Capital