Ledgers & dead/clic

tan84
tan84 Registered Posts: 6 New contributor 🐸
in Level 2 general discussion
Hey all studying level 2 and all was going well till I hit double book keeping ? I understood all the assets liabilities ect but as soon as dead/clic was thrown in and how to record it in the ledger I’m stumped can anyone suggest any east ways to remember or tips it would help me so much I don’t want to move on to section 5 till I’ve mastered this

Thanks ?

Comments

  • tan84
    tan84 Registered Posts: 6 New contributor 🐸
    No one?
  • sk2022
    sk2022 Registered Posts: 24 New contributor 🐸
    Hi,

    DEAD CLIC is nice and simple to remember

    These all go on the debit side

    D - Debtors
    E - Expenses
    A - Assets
    D - Drawings

    These all go on the credit side

    C - Creditors
    L - Liability
    I - Income (Revenue)
    C - Capital

    Just think right you bought a car for example it is an asset and how did you pay for it bank or cash

    Motor Account (Asset) - Debit - Car Purchase

    Bank / Cash Account - Credit - Payment for Car

    Another example

    Goods Sold for example - Games Store for example

    Income N/L / T-Ledger - (Games Code) - Credit

    VAT - Liability - Credit (if VAT is applicable)

    Debtors Control Account / Customers Control Account / Trade Receivables Control Account (basically the customers account) - Debit

    Hope this helps you out
  • sjtoomer
    sjtoomer Registered Posts: 63 Regular contributor ⭐
    Note that the 'sides rule' of DEAD/CLIC relates to *Increases* in Expenses/Assets/Drawings (being on the left-hand side, the Debit side) and Liabilities/Income/Capital (being on the right-hand side, the Credit side). If any of EAD/LIC are Reduced, the side of the entry is switched.
  • tan84
    tan84 Registered Posts: 6 New contributor 🐸
    > @sk2022 said:
    That’s very helpful thank you,
    I’m understanding the dead/clic and what things are assets ect what I’m getting confused in is how to write into a ledger, I’ve spoken to my tutor and she said it becomes clearer as I continue through level 2 if I had someone to sit down with me and explain I’d understand
  • tan84
    tan84 Registered Posts: 6 New contributor 🐸
    > @sjtoomer said:
    That’s helpful too thank you, just getting my head around filling the ledger
    So if I brought a car with money from the bank it would be written on the debit side car purchase but what do I write opposite in the credit side? Do I write bank? If I buy with cash do I write something different
  • sk2022
    sk2022 Registered Posts: 24 New contributor 🐸
    @tan84

    No worries you are most welcome.

    I was in the same position when I started too, once you go further into Level 2 and Level 3 you will see that it does start to make sense. It will be a bit confusing at first I must admit.

    With the car example, you have it correct that you would increase the Car / Vehicle Account which is debit. When you pay with Cash, you would have either a bank or cash account. Most likely it will say bank account which is credit. In simple the Bank acts as follows - Debit on a bank means money coming in, Credit means money going out. Anything you purchase will mean that the bank is credited and any money you get in will mean the bank is debited. I am not too sure if they have taught you T-Ledgers. I have attached a simple T Ledger entry for the above example. It does get a bit more complex going forward where there is VAT involved and supplier accounts etc, but this is the basic which will help you hopefully help you get an understanding.
  • tan84
    tan84 Registered Posts: 6 New contributor 🐸
    That helps a lot thank you so much, I’m glad to hear it becomes a lot easier as level 2 goes on I’m hoping I can get a job when qualified level 2 then do level 3 while working @sk2022
  • sk2022
    sk2022 Registered Posts: 24 New contributor 🐸
    edited November 2022
    Hi,
    No worries you are most welcome. You will start to understand it more when you get further into Level 2 and 3 :-). You will be able to get a job in accounts just stay positive I am sure you will get there :-).
    I have even created a YouTube channel which provides help with Excel, General Tips and other bits and bobs. Feel free to have a look at my videos, if you like them do feel free to like, share them and even subscribe :-). It would be a massive help as they take a while to do plus its all free and educational to help everyone out :D. Also if there is any specific video you would like do let me know
    https://youtu.be/ERxqE989FkE
    https://youtu.be/cH00hKavzX4
    https://youtu.be/bd3xCtXNivc
    https://youtu.be/2upMOcCYnX8
    https://youtu.be/ERxqE989FkE
  • tan84
    tan84 Registered Posts: 6 New contributor 🐸
    That’s amazing thanks so much I’d love to see an accounts ledger being filled in if you haven’t already seeing it really helps I can then make notes and refer back I’ll definitely subscribe!! ?
  • sk2022
    sk2022 Registered Posts: 24 New contributor 🐸
    Hi,

    I will try and make a video on a ledger being filled in soon, if not I will find you a link that does that for you :-). Not avoiding doing it for you, its just at the moment so busy, work, studies (I am on Level 4 at the moment), then creating videos on Tiktok and then if I have time on Youtube so yh seems like 24 hours isnt enough in one day haha.

    Thanks if you do subscribe, also do feel free to like and share my videos. All this is free to do :D and could help others too :-)
  • sk2022
    sk2022 Registered Posts: 24 New contributor 🐸
    Hi @tan84

    Do you have any specific question in mind and I could try to show you how to answer it or even create a video on Youtube. My uploading has been fairly quiet last few weeks due to being ill and busy. I will be uploading something on Youtube and Tiktok very soon

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