debits and credits
System
Posts: 100,534 🤖 Admin 🤖
hi all,,,,<BR><BR>hope someone can help me on this one...if we know what our opening balances are and are asked to put them in the appropriate accounts, can we use the PEARLS method to make sure that the figures get entered onto the right side of the account??<BR><BR>for example: if i had a figure for motor vehicles £12900 opening balance<BR> if i had a figure for heat and light £2000 opening balance<BR><BR>im unsure what side of the appropriate account to post the opening balnce.....<BR><BR>PLEASE HELP......<BR><BR>thanks rob<BR>
0
Comments
-
debits and credits
<BR>In a word - yes.<BR><BR>You've got your motor vehicles, they're an asset, so it's a debit.<BR>Your motor expenses are expenses (obv!) and they're also a debit.<BR><BR>I use DEAD CLIC<BR><BR>Debits are Expenses Assets and Drawings<BR>Credits are Liabilities Income and Capital<BR><BR>Pearls was too confusing for my little brain!<BR><BR>And don't worry - if you get something on the wrong side, you'll realise at the end because it won't all balance. So you should be able to track it down!0 -
debits and credits
hi lillibet..<BR><BR>so if my trial balance doesnt balance i take it i will have a figure in my suspense account.....am i right in thinking that it will be the amount wrongly posted as long as there are no more errors???<BR><BR>my god i think im actually gettin my head round this!!!<BR><BR>rob0 -
debits and credits
<BR>Obviously I don't know what you're using, but Sage posts opening balances using the suspense account ie<BR>Dr expense Cr suspense<BR>Cr income Dr suspense<BR><BR>And at the end, as you say, hopefully there's no balance on the suspense account!<BR><BR>If there is, then either you've put something on the wrong side or you've made a transposition error.<BR><BR>Or the figures didn't balance to start with ;p <BR>Always good to blame someone else...!0 -
debits and credits
wat i always think about is debit the receiver and credit the giver.what do u think just try that it might be cool0