Hi, long atory short, I've been a lurker for a little while whilst deciding which route to go down. Started self-study with ACCA towards FA and then an opportunity came up at my local college for Level 3 AAT to start in September. But they want me to sit an AAT L2 closed book exam as an entrance exam to get on to the course. I thought I had understood the basics of debit and credit and DEAD CLIC but i've just been revising and came across this exam style question and it's totally thrown me. Can one of you very kind and clever people please, please explain why they are classed as debits and credits (I thought debits increased the balance and credits decreased the balance, but in this example, sales are going in the credit column of the trial balance and it's totally stumped me! (See attachment for the question)
-- Edited by DebraF on Thursday 6th of July 2023 09:01:17 PM
You need to consider the double entry of the transaction, what is the other side of the transaction if Sales are a credit? if you understand where the proceeds from the sales are going and what this does to the accounts this should help, also with the trial balance some entries are on the P&L some are on the B/S
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
