Accounting (Help!!)

samapp

I am in 3rd year at the moment and i want to take accounting next year but I cant understand most of it.
E.G. Record the transaction in vintage ltd. ledgers
vintage ltd. bought a photocopier on credit from jones ltd.
Credit________________________________________________

Debit_________________________________________________

I said debit jones ltd a/c because debit the receiver and he is getting the money but the answer is debit the photocopier i.e. equipment a/c.
Why?
I said credit the bank a/c because we bought the goods on credit but its the jones a/c. How is that possible if we bought it how is he the giver?

Will I need to know this really well for LC accounting because at this point I dont want to do it. I thought about science and that will never happen and geo and history etc. wont either. I am doing business economics and hopefully with your help accounting but do I need to know this or is it taught again? Does anyone have an accounting link or book to recommend?

Also is the 3 business subjects completely different from one another or is it easier to do all 3?

jhn_noln

are you sure the answer is not debit photocopier account( the photocopier is a new asset so hence debit your asset) and credit jones ltd a/c (you have not paid for the photcopier yet because you bought it on credit so therfore jones ltd becomes a creditor)?????

samapp

jhn_noln wrote: »

are you sure the answer is not debit photocopier account( the photocopier is a new asset so hence debit your asset) and credit jones ltd a/c (you have not paid for the photcopier yet because you bought it on credit so therfore jones ltd becomes a creditor)?????

I changed it your right. Thanks.

alan4cult

That Rule Debit the Receiver, Credit the Giver is not incorrect but very misleading.

Ok, lets say I buy a photocopier from you. You are therefore a creditor to me (I owe you money). Ok, now

I received: Photocopier
You gave: Photocopier

I'm the receiver and you're the giver. Or more specifically: my photocopier account is the receiver and your account in my books (creditors ledger) is the giver.

titan18

LC accounting is totally different to what you do in JC.I'm doing accounting and I'd advise you not to do it.2 business subjects is enough,imo.

Mars Bar

I would advise doing...I was hideous at it but there is a way! Assets and losses on the debit and profit and liabilities on the credit. It is the Golden Rule to me! Seriously, all you have to do is get stuck into it and learn it. It is a subject you could achieve good points in. I got a D3 in the L.C last year but this year in the mocks I got a B3 by just learning it, no questions asked!

jhn_noln

cant speak for business or economics but i agree accounting for the leaving is a lot different to jc! To be honest there is a lot of "learning off" stuff that you just do and eventually you dont even ask why you do it!
Many people who are good at just learning things off will do well (obviously to get top marks you will have to understand why you do it:P)! But with a bit of learning and practice a high B is very possible without a whole lot of knowledge!

Bryan4president

I agree. Once you have a grasp of the subject, it isn't that dificult. I didn't do a business subject for the JC but I'm aiming for an A1 in the LC. Definetly my best subject

Steveo12345youg

Wats the best way to study accounting?

i practice questions and see wat i would get if marked coherently:eek::eek::eek:

Yuugib

Me doing all 3 business subjects,
Business and Economics have some similiarities, in economics there is a lot of learning and less explaining than in business. In business you would have to be good/okeish at english to do well in it )

Accounting then, some of the material is on the business course, like some of the ratios, trading p+L and balance sheet.. again - its all very understandable

My advice is:
If you great at writing and creative - choose business
If you like learning things nearly word by word - choose economics
If you like practicing rather than learning - choose accounting... although there is stuff to learn as well, but no so much as in the other two

declan_lgs

samapp wrote: »

I am in 3rd year at the moment and i want to take accounting next year but I cant understand most of it.
E.G. Record the transaction in vintage ltd. ledgers
vintage ltd. bought a photocopier on credit from jones ltd.
Credit________________________________________________

Debit_________________________________________________

I said debit jones ltd a/c because debit the receiver and he is getting the money but the answer is debit the photocopier i.e. equipment a/c.
Why?
I said credit the bank a/c because we bought the goods on credit but its the jones a/c. How is that possible if we bought it how is he the giver?

Will I need to know this really well for LC accounting because at this point I dont want to do it. I thought about science and that will never happen and geo and history etc. wont either. I am doing business economics and hopefully with your help accounting but do I need to know this or is it taught again? Does anyone have an accounting link or book to recommend?

Also is the 3 business subjects completely different from one another or is it easier to do all 3?

Your business studies teacher should help you get this into your head?

Accounts are kept by a business to record their (own) transactions and so they can calculate their assets and their worth and what not.

You don't record that Jones ltd is getting money off you, you NEVER DO THIS. You record that you owe him money, i.e. he is a creditor.

And you record that you got (received) equipment i.e. debit it.

Then when you come around to paying for it THEN you bring the bank account into it. And you credit the bank (giving) and debit the Jones ltd account (you no longer owe him that money).

There's some rules that will help you on your merry way, they've been said.
Assets, expenses and losses on the debit side, liabilities and gains on the credit side (some of these maybe you haven't come across but don't worry).
For every debit there's a corresponding credit.
Debit debtors, credit creditors (when they're going up i.e. when someone owes you more or when you owe someone else more).

I hope I don't confuse you now..

scheister

Two small things i was taught to help with accounting one for lc and the other in college

think of ur accounts as a balanced weighting scales. and they must stay this way.

Also the whole Debit credit things like the opening post.

Debit
Expenses
Assets
Drawing

Credit
Liabilites
Income
Capital

hope that helps

straight_As

scheister wrote: »

Two small things i was taught to help with accounting one for lc and the other in college

think of ur accounts as a balanced weighting scales. and they must stay this way.

Also the whole Debit credit things like the opening post.

Debit
Expenses
Assets
Drawing

Credit
Liabilites
Income
Capital

hope that helps

Just a few acronyms I found really helpful for dealing with trial balances at JC level:

EARL

Expense and Assets above Debit, Revenues and Liabilities above Credit.

This and bit of common sense in determing the above, I found, made trial balances pretty andy.