Double entry even more confused!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Ok so i have read the thred before this. I understand the PEARLS except for the difference between a reevenue and a sale? Can anyone enlighten me?

Also control accounts. I am muddled with the sales accounts, sales control accounts, which would i record an invoice in? Is the sales the same as the individual debtors? Is the SLCA the debtors account?OH help please!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    I dunno maybe someone can prove me wrong but there is no difference between revenue and a sale?


    1) You record invoices in the sales ledger which is a seperate ledger to the nominal ledger.
    2) The sales ledger control account (also know as the debtors control account) is an account in the nominal ledger, and its balance represents all the recording on individual accounts you have done in the sales ledger. So the balance on the sales ledger control account should = the sum of all the individual sales ledger account balances.

    Double dutch I know! Maybe try reading a few different explanations of it from a few different sources, if you can, and one of them will strike home.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    Revenue is income in its broadest sense, so normally (but not necessarily) a sale.

    Bank interest earned is revenue, but not a sale. Also say I sold my car for a profit (fat chance :lol: ) that would be revenue for my company but not a sale, as all my sales are numbers :wink:

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    darn it I knew there was something.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    SLCA, debtors account and accounts receivable are all basically names for the same thing. Confusing but thats how it is.

    The sales ledger is not actually part of the double entry system, it's a subsidiary account. It's really just a place to record the individual transaction so the main ledger isn't cluttered up with more stuff than is necessary. The SLCA is main ledger account that summarises the transactions in the sales ledger.

    If you've made a credit sale it would be recorded in the Sales Day Book. You would record the individual sale in the sales ledger and use the totals from the day book in the SLCA (debit) and the Sales account (credit). VAT, discounts and returns will figure in this at some point too.

    Just keep at it, it will make sense at some point. I was completely baffled by all this when I started.

    Hope that helps a bit anyway.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    I am completely baffaled and it sems the more you look inot it the worse it gets. So the SLCA is not a subsidary, im sure i read it was?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    Try reading my post on this thread, might help a bit:

    http://www.aat.org.uk/forums/posts/list/13084.page
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    Much better explaination than mine :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    now thats what I call patience and compassion.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Double entry even more confused!

    Ok yes, thats a great explanation, thank you, think i might be with it now.

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