AAT Foundation help

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am stuck on part of my work, I have completed a cash book with entries for cheque's and automated bacs. Now i need to enter the info into the double-entry accounts but i'm not sure on which accounts i need to debit credit as i have Purchases day book, main (general) ledger -purchases,purchase ledger control account, value added tax, discount recieved, and then i have 7 suppliers. Please help.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Foundation help

    Edit
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Foundation help

    Hi,

    Still a bit confused as i have entered the cheques and automated bacs into cash book - payments, i then have the following double - entry accounts to enter the information in:

    Purchases day book

    Main (General) Ledger:-
    Purchases
    Purchases ledger control
    Value added tax
    Discount Recieved
    Subsidiary(Purchases)Ledger
    seven different suppliers under this catagory.

    i am unsure what i to but in the details of each debit/credit too.

    Could you help please

    Thanks

    Gemma
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:AAT Foundation help

    Hi!

    I'm only a rookie, but in general I think you need to look at something like this:-

    The suppliers (creditors) are people you owe money to. - so their values go on the right-side (credit). ('gross' values for each transaction). while payments to them would be debits.

    Purchase acc is debit entry (net value - TOTAL for all purchases)

    VAT account is debit entry (vat TOTAL column from purchases day book), while vat for Purchase Returns is credit entry, but you didn't mention Returns... (ie Vatman owes you money, excess of sales - credits, means you owe vatman...)

    Discount received is debit entry (as entry in cash book should be on credit side...) and would be entered (Debit) into each suppliers account. Also the memo TOTAL for the column of entries posted to debit of 'Discounts Rec'. (Discounts Allowed would be debit in cashbook but credit entry in its own acc.) :? :? :?

    ie payments to suppliers + disc rec should balance-off against what you owe...

    Then your control account will take TOTALS from some of these (- but remember to post to same side!)

    A veteran will probably be able to fine-tune the details for you... :)

    Have seen your guidance, Anne Marie, but I'm not sure about your debit/credit Discount... I feel they should be the other way around...??? :?

    Your 'details' will be the source item, from your Purchase Day Book, usually, with payments crossreffed to credits in your Cash/Bank book???

    You will also have the 'accumulated Total payments to your suppliers' somewhere, which will go into debit(?) of control account...

    Right! Got it... Your Discount Received (and Discount Allowed) are like miniature control accounts. The memo TOTAL stays on the same side. So Anne Marie was right. You don't swap them over.

    [forgot about this one... cringe...]

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