Home For AAT student members AQ 2016 Foundation Certificate in accounting General discussion - Foundation level
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Debit credits

Please can someone help keep with debits credits it has completely smashed my head a carnt get my head round them


  • fedemennifedemenni MAAT, AATQB Posts: 94

    debits: expenses, assets, drawings on one side and credits: capital, liabilities, income, on the other side
  • amurrayamurray Feels At Home Registered, MAAT, AATQB Posts: 302
    edited December 2019
    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
    Completed AAT in March 2020
    Currently Studying: CIMA 'Operational Level'
  • Pian32Pian32 Registered Posts: 205
    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
    F6- Sitting September 2020
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