Journals - Oh my God!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Help please I've got my first exam IAC Diploma on Tuesday (foundation certificate) i am gonna fail cos i really can't get my head around Journals - Can anyone please help simplify
There are a number of other things i'm worried about but if i could just get my head round this i think i'd feel a bit better

S :roll:

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journals - Oh my God!

    OK My tutor sayd you should always start off with the account you need to debit. So say £30 has been debited by error to heat and light it would be as follows:
    misc expenses = £30 debit.
    heat and light = £30 credit.

    debit and credit amount must balance.


    Just think where it would go in the T account. Don't forget if you get stuck in the exam write out the T account to work out what goes where in the journal.

    This is the way our tutor taught it to us and it has stuck in my head.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journals - Oh my God!

    Okay - kinda got that but what happens with a suspense account - we were doin past papers on friday and £130 had been posted in susp acc £140 had been ommitted from motor exp and £120 pymt had been posted as £100 in misc exp account - this got me really confused and has really knocked my confidence - can you help?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journals - Oh my God!
    goddess wrote:
    Okay - kinda got that but what happens with a suspense account - we were doin past papers on friday and £130 had been posted in susp acc £140 had been ommitted from motor exp and £120 pymt had been posted as £100 in misc exp account - this got me really confused and has really knocked my confidence - can you help?
    which paper was it?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Journals - Oh my God!

    Take a look at June 2006 paper. On page 15 there is the journal question.
    £130 has been CR to suspense acc
    £100 has been DR to disc allowed instead of £110
    £140 has been DR to telephone acc correctly but £140 has been DR to stationery acc in error

    So you need to DR £130 to suspense
    DR £10 to disc allowed
    CR £140 to stationery

    This means both DR and CR will add up to £140.

    Hope this helps as I haven't got a past paper with the question you have.

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