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Hints and Tips for Level 1 Please!

  • 6 posts
  • # 75934

I have only 4 more chapters to go before I revise and sit level one exam but I struggle to remember which side of the accounts different things go, debit or credit. Obviously I know that there needs to be a double entry for everything and that sales and purchasing are opposite to each other but does anyone have any helpfull hints or tips to help remember which side everything needs to go to help it stick in my brain!?

Thanks in advance!

KerryB
  • 269 posts
  • # 75937

Hi Becky,

I have a good memorable one for you;

Debit (DR) Debtors
Credit (CR) Creditors
 
If you remember those 2 then you have the double entry sorted for sales and purchases. You sell to a debtor (debit debtors) therefore, you CR sales etc.

This has stuck in my brain since doing the foundation AAT back in 2000, so it must be a good one!

I know that's only a little help, but every little helps and a little bit at a time - I say!

Regards

Kerry

EDIT - 'brain' read 'brian' Embarassed
EDIT2 - must read muct (oh dear!)

Edited at 01 Nov 2011 04:26 PM GMT

Edited at 01 Nov 2011 04:27 PM GMT

  • www.berrybookkeeping.co.uk

    My responses are based on my opinions, not necessarily facts.

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kjmcculloch
  • 1159 posts
  • # 75938

I had a couple of ways to remember debits and credits:

DR increases an Asset
CR reduces an Asset
CR increase a liability
DR reduces a liability

Remember one of the above and the rest can be worked out.

For the actual layout there is a sentence you can remember: DRive on the left and CRash on the right. 

Hope these help.

Kris 
Geoff
  • 180 posts
  • # 75939

Although I haven't used it yet there are some who like DEADCLIC


debit

Debtors

Expenses

Assets

Drawings


credit

Creditors

Liabilities

Income

Capital
Jocelyn
  • Member
  • 71 posts
  • # 75941

Hi Becky


Remember the bank account or cash account 'In' (Dr)  and 'Out' (Cr)


If you pay for something from the bank, the bank has paid 'Out' so is a credit and the corresponding entry must be a debit.  So this means that a receipt by the bank is 'in' or a debit and the entry in the sales account must be a credit.


Look at each transaction as to how it appears on the bank, in or out and the corresponding entry is always the opposite.  
Once this is understood the rest should follow.


When sitting the exam,  write a 'T' account for the bank account on your note pad with 'In' and 'Out' to reasure yourself that your answering the questions correctly.


Hope this helps


Jocelyn          

          
  • 5 posts
  • # 75943

Hi Becky, I'm a new student as well. My Daughter is a Medical Student and I bought her a book for Medics to remember things based on Menomics (? spelling) A lot of them are slightly risque but it helps the memory. My aid memoir has therefore become. Debit = Deby. Deby is a receiver. Debit the side receiving the value and credit the side giving the value. I hope this helps. (Sory if it is a little risque but you should see some of the ones in the Medics book!) Good luck.

Edited at 01 Nov 2011 06:32 PM GMT
  • 6 posts
  • # 75952

Thank you to all of you for your replies, I will try out some of your suggestions :-)

I especially like "DRive on the left and CRash on the right" 

Smile 
  • 51 posts
  • # 76167

I worked out that when I go shopping I take my credit card.. so a purchase invoice is a credit in the purchase ledger, from there you can work out all the rest. 

You only need to remember one and the rest will follow
PeteL
  • Member
  • Practice Licence
  • 88 posts
  • # 76176

Becky,

The most helpful one as you progress through the levels is Geoff's      DEAD  CLIC

Very best of luck with your exam, once you've passed this one, the confidence will ooozzz !



  • Kind regards,
    PeteL   Smile


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