Debit credits

Options
Sunnyday
Sunnyday Registered Posts: 1
in General discussion - Foundation level
Please can someone help keep with debits credits it has completely smashed my head a carnt get my head round them

Comments

  • fedemenni
    fedemenni Registered Posts: 93
    Options
    DEAD CLIC

    debits: expenses, assets, drawings on one side and credits: capital, liabilities, income, on the other side
  • amurray
    amurray Registered Posts: 304 Dedicated contributor 🦉
    edited December 2019
    Options
    I learnt DEAD CLIC which was fantastic.... but I was also informed of another one: PEARLS.

    PEA = Purchases, Expenses, Assets – Debits

    RLS = Revenue, Liabilities, Sales – Credits
    MAAT, AATQB, MICB PM.Dip.
    Completed AAT in March 2020
  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
    Options
    I think the other way of thinking about it is: Has the money gone to something or come from something. (from the business perspective)

    Taking DEADCLIC which is what I was taught initially.
    You put money into an expense to pay it.
    You put money into your assets to store it (banks, FAs etc)
    You put money into the owners drawings.

    You take money from a lender (Liabilities)
    You take in income
    You get capital from the owner.

    This also means when you reverse one of those like pay a loan you put money into the loan on the debit side.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL -
    SBR - Passed Mar 22
    ATX - Passed Dec 21
    APM - Passed June 22

Categories

Privacy Policy