HELP PLEASE! credits and debit

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi guys :D
im doing the foundation AAT diploma, or something like that! my brain is sooo fried i dunno what im doing! i have had a look thru the forums and your all soo helpful which is good as im a newbie and doing this from home and dont work in accounts so need the help!!!!
i was wondering if anyone could help me a bit more with credits and debits on ledger accounts?
PEARLS has helped so far so everytime i think about this but sometimes its wrong (or more like im wrong!!!!) like creditors control account, i would think creditor = liability therefore is 'L' on pearls and therefore a credit? and does this mean all the subsidiary ledgers are also credits? :oops:

God im confused! help please!!!! :shock: :shock: :shock: :shock: :shock: :shock:


Also is there an easy way of remembering which is a debtor and which is a creditor as i keep getting confused with which is which! :cry:

Thanks
Tannia

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP PLEASE! credits and debit

    I use these two theories to help me

    Debit = In

    Credit - Out

    And Dead / Clic

    Dead - Debtors, Expenses, Assets & Drawings


    Clic - Creditors, Liabilites, income, capital
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP PLEASE! credits and debit

    Hi
    Thanks :)
    So DEADCLIC, that makes debtors a debit entry? and creditors a credit entry then?
    and a creditor is some one i am IN credit to, meaning i owe them money?
    sorry i thought i got it at first but the more i plough thru this book im getting more confused!! :oops: :cry: :evil: :shock:
    Tannia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP PLEASE! credits and debit

    Tannia


    When I first started, I just used to remember


    Debtors control - Debit (Asset: Money owed to the business)

    Creditors Control - Credit (Liability: Money that the business owes)

    The subsidary accounts in either ledger are just the memorandum accounts, showing the indivisual transaction that the relevant control account mirrors
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP PLEASE! credits and debit

    Is it really as easy as they mean their name! god i feel stupid! lol! debtor means debt!!! lol! how could i have missed that! and i know debtor is asset cos DEADCLIC, D debt and A = asset and C = credit and L = liability!
    impressed with u guys!
    thank you :):D

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