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messedup89
Experienced MentorRegistered Posts: 1,281
I remember doing this at A Level but have totally forgot.
How do you know what items you debit and what you credit when doing Jnl entries.
Somethings like if an asset increases you debit/credit it (cant remember which)
If an liability increases you debit/credit.
Help!
How do you know what items you debit and what you credit when doing Jnl entries.
Somethings like if an asset increases you debit/credit it (cant remember which)
If an liability increases you debit/credit.
Help!
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Comments
So if more sales you increase debitors reduce purchases (as you are giving more credit but selling your purchases)
remember pearls and t-account
Sorry hope this makes sence
P purchases E expenses A assets R revenue L liability S sales
PEA - Debits
RLS - Credits
Put them in a t-account or Trial balance and it shows which side where goes
ah thats very helpful. Think i remember that now. thanks
Nothing particularly but this is a very simple memory tool I wish I'd knew about earlier!
SmileS
No problem if i can think of any more i will post them no problems, also e-learning is fab helped me through a lot.
Good luck
We use 'Dead Clic' on my course for t accounts
Debit
Expenses
Assets
Drawings
Credit
Liabilities
Income
Capital