How to even get started?

SLT2017
Registered Posts: 2
Hi All, I've recently started the course but I am struggling to get through the workbook. Any hints or tips on how to make the learning a bit more user friendly would be appreciated. Thanks
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Comments
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Double entry bookkeeping: Fundamental rule - Every transaction has an effect in at least 2 different account.
Definitions:
Asset - Something that you own (i.e. a Car)
Liability - Something that you owe (i.e. a Loan you take out)
Income - Money made by providing a service/selling goods
Expense - Money deducted (you paid for something)
Example:
Let's say you bought a Nisan Micra (with glowing race strips on the side) costing £2,000. 2 accounts will be involved in this transaction. A Bank account (Paying by cheque for argument's sake) and an Asset account (A car is an Asset because you own it).
The double entry would be:
Asset Account (Car): Debit the Asset Account by £2,000 (paid by via the Bank account (Cheque))
Bank Account: Credit the Bank by £2,000 relating to the Car purchase (Credit on a bank account means money coming out, Debit on a bank account means money coming in)
Can you see the double entry? Credit Bank, Debit Asset. Two effects taking place for one transaction.
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Best ways to get your head around double entry:
PEA | RLS (PEARLS)
Debit side consists of PEA
Purchases
Expenses
Assets
Credit side consists of RLS
Revenue
Liabilities
Sales
or;
DEAD | CLIC (DEAD CLIC)
Debit
Expenses
Assets
Drawings
Credit
Liabilities
Income
Capital
Hope this helps.1 -