First Previous - Page 1 of 1 - Next Last

Advice for a Newbie

  • 1 post
  • # 114590

Hi, I'm new to the ICB and am studying Level 2 via Open Study College.  Have to same I'm finding it hard going, possibly because my background is banking and it's completely opposite!

Can anyone recommend any background reading or say Youtube posts that may be useful in helping it to sink in?  I'm only on Chapters 3&4 so I acknowledge it's early days but it can be quite disheartening when you don't quite get it.

Thanks.

 

Sheila

  • Member PM.Dip
  • Practice Licence
  • 33 posts
  • # 114591

Hi Sheila

I also found it hard going when I started. I bought Business accounts for bookkeeping and financial accounting courses by David Cox. It just explained things slightly differently and it clicked.

Good luck. Becky.

  • Member
  • Practice Licence
  • 14 posts
  • # 114593

hi Sheila.  I completely understand. I'm new to this to and with banking background it really fried my brain... however the more of the topics I read the more it made sense.. things are explained again and were made a lot simpler for me in the later topics! hope you figure out.  you almost have to forget about banking completely ! all the best :)

  • Student
  • 5 posts
  • # 114820

For me, the bookkeeper's bible has to be Frank Wood's Business Accounting 1 - it's very well presented and fully indexed, with lots of worked examples and practical exercises in there to help you get your head round it all.  The latest edition is quite expensive but I just picked up a 12th edition (with a goldfish on the cover) for under a tenner inc. p&p.  It was published in 2012 so will be just a wee bit out of date in parts, but all the basics will still stand.

Keep going and it will 'click' one of these days.  Laughing

  • Accredited Training Provider
  • 426 posts
  • # 114822

Hi Sheila, a common issue but you should continue to look at it from the banks perspective. Account holders are your customers and if they have money in their accounts, the bank owes them that value, so they are creditors of the bank (Cr). If they are overdrawn, then they owe the bank money and are debtors of the bank (Dr). Bank statements are extracts of the banks own accounts, hence the opposite of how an individual would perceive their statements.

 

Hope this helps and good luck with your journey.

  • Student
  • 47 posts
  • # 116177

I agree, it can all seem very confusing, but in my teachings I have been taught to remember the mantra Debit the account receiving the value - Credit the acccount giving the value. So when you pay money into the account you are giving value to the bank so its a CR and when you take money out of the bank the Bank is giving you value so its a DR.

 

Now think about this no matter what entry you are placing in your balance sheet, no matter how complex it seems and quantify who is giving the value CR and who is receiving that value DR.

The only time this seems to be a bit tricky to work out is when working with the cash book as it appears to be back to front - as a purchase would usually be a debit value as you are receiving something by purchasing it and a sales value would usually be a credit as you are giving someone else value, but because in the individual sales and purchase ledgers you would record these as I have just mentioned the opposing double entry in the cash book must be its opposite.

 

At least thats the way I see it so far.

 

Digit

 

PS sorry just realised how old this thread is so you've probably passed by now - but maybe it can help someone in the future.



Edited at 26 Jan 2018 03:41 PM GMT

First Previous - Page 1 of 1 - Next Last
loading