HELP ME WITH DOUBLE ENTRY AND LEDGERS!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:29AM in AAT student discussion
I am totally confussed with Double Entry and nominal and general ledgers! Can someone please distinguish the differences between the ledgers and give me some tips on how to remeber what goes where in double entry please?<BR><BR>You may wonder why I am struggling with this at intermediate level but I havent done Foundation level, due to the qualifications I already have I started on Intermediate. I would appreciate some words of wisdom from those who are lucky enough to understand!!!<BR><BR>I do find it strange that there are others in my class who have completed the foundation level yet still do not understand the basics of double entry, did anyone else find themselves in this position?<BR><BR>I must admit that after a few months of FRA its starting to sink in and funnily enough, the P&L and Balance Sheet has 'clicked' before the double entry has, but im still a long way from understanding it so anyones help would be greatly appreciated!! Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    HELP ME WITH DOUBLE ENTRY AND LEDGERS!!!

    YOU SHOULDN'T OVERLY CONCERN YOURSELF WITH LEDGERS AT THIS STAGE. THIS WILL ALL FALL INTO PLACE DURING TERM WHILST YOU UNDERTAKE THE VARIOUS TASKS ASKED OF YOU.<BR><BR>MY ADVICE WOULD BE TO STUDY A TRIAL BALANCE IN DEPTH. BY THIS I MEAN PRACTICE THEM UNTIL YOU KNOW THEM INSIDE OUT. YOU NEED TO BE ABLE TO LOOK AT A LIST OF BALANCES AND KNOW WHICH ITEMS ARE DEBITS AND WHICH ARE CREDITS.<BR><BR>ONCE YOU'VE MASTERED THIS, CONCENTRATE ON WHICH ITEMS GO WHERE IN THE FINAL ACCOUNTS, IE, P & L, TRADING A/C & BALANCE SHEET. THIS WILL GIVE YOU A DEFINITE EDGE THROUGHOUT THE ENTIRE TERM AND YOUR EXAMS, ESPECIALLY WHEN YOU COME TO DOING ETB'S (EXTENDED TRIAL BALANCES).<BR><BR>ONCE YOU HAVE GOT THIS, DOUBLE ENTRY WILL BE THAT MUCH SIMPLER FOR YOU AS YOU'LL BE ABLE TO PICTURE HOW THE DEBIT & CREDIT ARE REFLECTED IN YOUR TRIAL BALANCE AND ULTIMATELY WHERE THEY FIT INTO THE FINAL A/CS, IE, TRADING, P & L, OR BAL SHEET.<BR><BR>I'VE JUST COMPLETED MY EXAM (MAINTAINING FINANCIAL RECORDS) AND THAT'S HOW I APPROACHED IT. <BR><BR>REMEMBER, KNOW WHICH SIDE THE DEBITS AND CREDITS GO IN A TB AND THEN PICTURE WHERE THEY GO IN THE FINAL ACCOUNTS. YOU SHOULD ALSO MAKE SURE THAT YOU HAVE THE ASSOCIATED MANUALS FOR EACH TERM. AAT UNIT 5 - MAINTAINING FINANCIAL RECORDS & PREPARING ACCOUNTS. SUPPLEMENT THIS WITH FRANK WOOD'S BUSINESS ACCOUNTING 1 (NINTH EDITION). THEY ARE BOTH INVALUABLE AND NECESSARY TOOLS FOR THE COURSE.<BR><BR>I KNOW PEOPLE ON MY COURSE THAT WERE STILL HAVING PROBLEMS WITH DOUBLE ENTRY EVEN COME EXAM TIME. BELIEVE ME, IF YOU CONCENTRATE ON WHAT I'VE SUGGESTED, YOU'LL GIVE YOURSELF EVERY CHANCE. ONE MORE POINT, WHATEVER HOMEWORK YOU GET SET BY YOUR TUTOR, MAKE SURE THAT YOU DO IT. THIS IS ANOTHER AREA WHERE PEOPLE COME UNSTUCK. HOMEWORK IS AN EXTENSION OF THE CLASSROOM IN TERMS OF WHAT YOU LEARN AND MUSTN'T BE SKIPPED. ALWAYS ATTEMPT IT.<BR><BR>REGARDS AND BEST OF LUCK,<BR><BR>DAVID<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    HELP ME WITH DOUBLE ENTRY AND LEDGERS!!!

    Hi, <BR>I took foundation last year and it took ages for DE to 'click'!<BR><BR>I found the following web page very helpful <BR>www.accountz.com<BR><BR>Click on the 'accounting for everyone guide' and the FAQ also some other helpful explanations (which you may find helpful!)<BR><BR>Also remember: Debit on the left, Credit on the right. <BR>Double entry is essential to keep track of where the money is going,<BR>Where it came from (a CREDIT) and where it has gone to (a DEBIT)<BR><BR>good luck!<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    HELP ME WITH DOUBLE ENTRY AND LEDGERS!!!

    Thank you both for taking the time to reply to me! Im off to try out your suggestions, thanks again<BR><BR>Laura
  • System
    System Posts: 100,534 🤖 Admin 🤖
    HELP ME WITH DOUBLE ENTRY AND LEDGERS!!!

    it always helps me to remember balances and entries this way<BR><BR>DR entries and balances are assets (vehichles) and expenses (gas heating & electricity)<BR><BR>CR entries and balances are liabilities (creditors) and income (rent recievable)<BR><BR><BR>be careful of accruals and prepayments though! <BR><BR>GOODLUCK!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    HELP ME WITH DOUBLE ENTRY AND LEDGERS!!!

    I have found the following helpful to remember Double Entry;<BR> <BR> Debit - Credit<BR> ARE - LIP<BR><BR><BR> A= Assets L= Liabilities <BR> R= Receipts I= Income<BR> E= Expenses P= Payments<BR><BR>I bet you will find it automatic after you have finished your Financial Unit.<BR>Regards<BR>Anne Marie

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