Help Please!!!!!!!!!!!!!
System
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Why is it that in the subsidiary purchase ledger purchases are credits but in the main ledger purchases are debits??Also in the subsidiary sales ledger there are debits which i understand but in the main ledger the sales are credits. Is this how it always is , the control accounts will always be the opposite?????????
Help, I can't even explain myself !!!!!!!!!
stuck,stuck,stuck
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Comments
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Re:Help Please!!!!!!!!!!!!!
Hi,I hope it will help you.
From purchases Day Book ( PDB ), the total goes to PLCA (Cr), VAT goes to VAT a/c (Dr) and Net goes to Purchases a/c (Dr).
Remember : the total of each supplier goes to credit of PLCA and goes to the same side of subs ledger. ( always goes to the same side)
From Sales Day Book (SDB), the total goes to SLCA (Dr), VAT goes to VAT a/c (Cr) and Net goes to Sales a/c (Cr).
Total of each customer goes to debit of SLCA and goes to the same side of subs ledger. ( always goes to the same side)
And remember, PEARLS.
PEA ( Debit )
Purchases
Expense
Assets
RLS ( Credit )
Revenue
Liability
Sales or Surplus
It's easy to remember if you draw T a/c of PEARLS.
Try it.
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Re:Help Please!!!!!!!!!!!!!
Thanks a lot, Your advice will help. I keep having mental blocks. Probably nerves due to the imminent exam
Thanks
Claire :roll:0 -
Re:Help Please!!!!!!!!!!!!!
There's no task 2.11 on exam june 13,2006.0