PEARL

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
can someone describe pearl to me, say if we are a business which does packing, what does telephone bill go as? or stationary? etc and if i buy goods will the VAT from the goods be debit or credit?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEARL

    Not quite sure if this is what you want to know...

    Debits
    Purchases
    Expenses
    Assets

    Credits
    Revenue
    Liabilities
    Sales

    The telephone bill and stationery are both expenses so will be debits in the appropriate accounts.

    VAT on purchases can be claimed back so it's essentially an asset (ie HMRC owe you the money) and is thus a debit. VAT on sales is a liability as it's money you owe to the taxman. Creditors are an asset and are thus (surprise surprise) a credit, debtors are the opposite.

    It's also worth remembering that the cash book/bank a/c doesn't really fit with PEARLS - payments are credits and receipts are debits.

    Hope that helps

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEARL

    DEADCLIC is also a good one
    Debit Credit
    Expenses Liabilities
    Assets Income
    Drawings Creditors
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEARL

    yer i agree with Gem

    Debit
    Expenses
    Assets
    Drawings


    Credit
    Liability
    Income
    Capital

    DEAD CLIC
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEARL

    Er... what's with that picture?! :shock:

    Not sure what type of forum you think this is jpooley!! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEARL

    That is one hell of an avatar JPooley!! :lol::lol:

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