Hello All,
Hopefully someone will be able to help me with this query of mine, I am currently studying Level 2 AAT Accountancy provided by The Skills Network. I have completed many pages of Unit 1 and have haulted at "ledger accounts".
I understand that every Credit must have a Debit and every Debit must have a Credit (Dual Effect) and I understand that concept of Double Entry Bookkeeping however transactions which involve "Credit Terms" seem to be causing some difficulty for me.
Has anyone got a easier way to remember what is credited and what is debited.
example question in-case the above did not make sense.
VML purchased goods for resale on credit terms for £4,600, what is credited and what is debited?
Hopefully the above makes sense, thank you in anticipation for your help!
Hopefully someone will be able to help me with this query of mine, I am currently studying Level 2 AAT Accountancy provided by The Skills Network. I have completed many pages of Unit 1 and have haulted at "ledger accounts".
I understand that every Credit must have a Debit and every Debit must have a Credit (Dual Effect) and I understand that concept of Double Entry Bookkeeping however transactions which involve "Credit Terms" seem to be causing some difficulty for me.
Has anyone got a easier way to remember what is credited and what is debited.
example question in-case the above did not make sense.
VML purchased goods for resale on credit terms for £4,600, what is credited and what is debited?
Hopefully the above makes sense, thank you in anticipation for your help!