HELP!! DOUBLE ENTRY

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hi Everyone!!

I am really sorry but I am studying for my exam in June and the more I am looking at Double Entry the more confused I am getting!!! I passed the Unit 3 sim back before xmas but now it has gone completely out of my head!!

Can anyone give me any ideas on how to remember double entry postings?? :?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP!! DOUBLE ENTRY

    Try PEARLS and DEADCLIC

    Purchases=debit
    Expenses=debit
    Assets=debit
    Revenue=credit
    Liabilities=credit
    Sales=credit

    DEBIT
    Expenses
    Assets
    Drawings
    CREDIT
    Liabilites
    Income
    Expenses

    They work for me! When posting the day books I always think Sales day book = debit debtors and purchases day book = credit creditors

    Good luck!

    Gem
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP!! DOUBLE ENTRY

    :D Thanks for that!! I will try and see if my brain starts working now!!

    I was reading through the other posts before I posted this message but got confused with all the different ideas!

    Thanks again :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP!! DOUBLE ENTRY

    Hi sorry but I think the last one on DEAD CLIC should have been Capital and not Expenses. Just didn't want you to get confused. :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP!! DOUBLE ENTRY

    That's cool I had noticed/realised that!!

    Just one last thing then if that's ok.

    I love the pearls and dead clic - it makes sense, but if i decide what something is eg: rent is an expense - would I debit the rent account and credit the bank//cash account?? Ie: post to the relevant account (eg: rent/telephone/sales/purchases)using pearls/dead clic, and do the opposite posting to the bank/cash account??

    Just trying to clarify things in my head!! :roll:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP!! DOUBLE ENTRY

    Oops sorry about that

    Yeah you would do the opposite in the bank account to make the double entry, so crediting the bank means you're taking money out, ie to pay rent, so you would then debit the rent expense account

    Sorry again about the typo! :oops:

    Gem
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP!! DOUBLE ENTRY

    Thats brilliant. I have tested your theory and I understand it!! Wow I can't believe it, it has all fallen into place. :D Thanks for your help.

    Tara

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