PROCESSING RECEIPTS AND CREDIT NOTES - BASIC ACCOUNTING

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello,

I am wondering if anyone can help me - I have recently begun the foundation course and am struggling with recording receipts and credit notes in the various t a/cs.

I have looked online for a basic explanation but cannot find one anywhere.

From the SRDB where would I post a receipt paying an invoice? Is it the sales ledger (cr), the customers account (cr) and from there on I am lost. Would I post the total received on the sales account as a debit and then credit the bank t? Sorry I know this is basic but is anyone able to help or direct me to a website where I could find an easy to understand tutorial?

Many Thanks

Sarah :lol:

P.S I am also struggling when there are discounts involved.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PROCESSING RECEIPTS AND CREDIT NOTES - BASIC ACCOUNTING

    Your correct entries when the invoice is issued is

    Dr Sales ledger control account (and the customer subsidiary ledger)
    Cr Sales account

    When the cheque is received the double entry is

    Dr bank
    Cr Sales ledger control account. (and the customer subsidiary ledger)

    The customers ledger does not form part of double entry as it is just the detail of what is in the SLCA.

    Please ask again if I haven't answered as you have wanted
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PROCESSING RECEIPTS AND CREDIT NOTES - BASIC ACCOUNTING

    From reading your post Sarah, you also appear slightly unsure about the books of prime entry.

    SDB - sales day book; for recording sales to customers
    SRDB - sales returns day book; for recording sales returned by customers
    PDB - purchases day book; for recording purchases made by us
    PRDB - purchase returns day book; for recording purchases returned by us
    CRB - cash received book (debit entry)
    CPB - cash paid book (credit entry)

    The last two are essentially both halves of the bank account, which is just like any other T account - payments in on the left, payments out on the right. Viewing it this way should help you remember where the opposite entry goes. For example, if we're paying a suppliers bill - which is a credit on the bank account since it's money out, then the corresponding double entry must be to debit the purchases control account.

    I wouldn't worry too much at this very early stage but I do promise you'll be pleasantly surprised how quickly you pick it up once you get going.

    Also see;

    http://forums.aat.org.uk/forums/posts/list/15646.page

    When I have more time, I'll also help you with the discounts if you're still confused or alternately, feel free to PM any one of us.

    Best regards,

    Robert

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