What am I doing wrong?

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nadia48
nadia48 Registered Posts: 13 New contributor 🐸
in Bookkeeping Transactions
hi,
Desperately need help.
I'm on chapter 3 of bookkeeping transactions and I feel like I'm missing something. I understood that all incoming money is a debit and everything out going is a credit. All these actions have the oppsite affect on another account.
I did some practice questions at the end of the chapter and got them all wrong as the answers are the opposite of what I've written.what am I missing?
I'm using the osborne books and the questions at the end of the chapter. I'm very confused and would appreciate any help given of you have used the osborne books.
Thanks all

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  • laddi2010
    laddi2010 Registered Posts: 8 New contributor 🐸
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    Remember these two words and it will make you expert in double entry
    Dead & Click

    All entries relates to dead is going on debit

    D stand for Debit
    E stands for Expenses
    A stands for asset
    D stands for Drawing

    All Click entries goes to Credit

    C - Credit
    l- liability
    I- Income
    C- Capital
    K - Nothing

    Think about the transaction what is it and then apply dead and click rule.

    I hope the above will help you. If it does please like and share with your friends.

    S K Punia Accountant
  • SJaneT
    SJaneT Registered Posts: 2
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    HI - hope I'm not too late to the party on this but I was always also taught to think of the money side of the transaction first. When I was learning we used to write out 'T accounts' and you always receive money in with your left hand (on the left hand side of the T - debit side) and pay it out with your right hand (on the right hand side of the T - credit side). So you're buying something you're crediting bank (as paying out with your right hand) and what you're buying is either an expense or an asset or you're drawing some money for yourself. Hope this helps???

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