Profit and loss and balance sheets

System · October 2005

Hi all Right im confused , did foundation last year and am now doing Intermediate ,starting with unit 5 now the bit that isnt sinking in is , in foundation , for debits and credits i worked on the basis of PEARLS now the bit that i am confused about is how do you no which acount balance goes to the balance sheet and which goes to the profit and loss account is there an Intermediate version of PEARLS ?? thanks

System · October 2005

Profit and loss and balance sheets

 PEARLS tells you that Debits are assets and expenses and Credits are revenue and liabilities right? So you already know what an asset is / what revenue is etc. Balance sheet is assets and liabilities and p&l is revenue and expenditure. BALPRE? BLAPER? PRELAB? The possibilities are endless...

System · October 2005

Profit and loss and balance sheets

Hi Have you ever used sage accounts?? If so all the codes 0001 to 4999 are balance sheet, and 5000 to 9999 are P&L. Sorry this is probably no use if you haven't use the package before!! Still Lilibet is correct in her description. Tracy

System · October 2005

Profit and loss and balance sheets

Hi Just to follow on from Tracy's post. I would suggest if you could get a printout of the nominal list on sage and learn which items are B/S and P&L. Tracy is correct in saying that all items from 0010 are Balance Sheet, but I was on the understanding that codes from 4000 (sales and other income) are P&L (obviously depending on how the chart is set up of course). My experience says that items from 0010 to 3200 are all the balance sheet and items from 4000 to 9999 are profit and loss items. Getting a nominal list printout from Sage would be an excellent revision aid to prompt you remembering what sort of items would go into a balance sheet and profit and loss from a trial balance. Our students at work do this and it does seem to work for them. But going back to PEARLS, this basis is still the same regardless of the paper level. Regards Steve

System · October 2005

Profit and loss and balance sheets

Hi Lemon Muffin The way I remembered it was PLIE BALS! DOn't laugh - it really works! The PLIE is P = Profit L = Loss I = Income E = Expenditure & BALS is B = Balance A = Assets L = Liabilities S = Sheet It helps me so hopefully will help you to! I also used DEAR CLIP DEAR is D = Debtors E = Expenses A = Assets R = Royaltoies (not required at this level) CLIP is C = creditors L - Liabilities I = income P = provision Let us know is these help! Littledoe

System · October 2005

Profit and loss and balance sheets

Hi We were taught to use the following when distinguishing between Dr and Cr DR's CR's A = Assets C = Capital C = Costs L = Liabilities E = Expense I = Income D = Drawings P = Provisions I swore by ACED and CLIP Then the next stage was ICE that goes to P & L, the rest go on B/S I = Income C = Costs E = Expense Hope this helps Joe

Profit and loss and balance sheets

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