Ledgers in Business

Timans

I need help with Ledgers, Haven't got a clue how to do them.

Any links or general help?

Thnaks, Tis' Urgent, Business Mock in a Week.

Thanks,

Timans

ketchup_please

If you have EDCO exam past papers to Business you can get the sample answers for all questions which contain ledgers.

Also, you can have a look here : http://www.skoool.ie/junior.asp?id=1169 under Double Entry Book Keeping. I struggled with ledgers at first, but I can do them with ease now but i find it hard to explain to people how to do it lol.

If you have any handouts or examples given from your teacher revise them - thats how I learned

Timans

Unfortunately, I don't. I find that teachers seem to just tell us what to do. No how to do it.

"Put that on the DR side" They never tell us why?

I did the interactive lesson on www.skoool.ie

and now i realise that the CR side is for the giving, and DR is for Receiving.

Thanks for the help, Doing that interactive lesson in 30mins was like doing 4 hrs of study.

Thanks again,

PurpleFistMixer

The way we learned it was "In for the Debit, Out for the Credit", so basically if the particular account is increasing (be it if money in bank is increasing, or amount due to creditors is increasing, or amount owed by debtors increasing, value of assets increasing, etc.) it'll go on the DR side, and if it's decreasing it'll go on the CR side.

Err... does that help at all?

JBoyle4eva

Oh, the memories of this question. for 3 years I never got one ledger correct and I knew I had to do it because I hadn't revised for anything else for the exam.

And, behold, for the one and only time, my JC ledger came out right. I was thrilled.

So, the morale of my story is.......Don't ramble on?

No, seriously, don't fret over them. It took me until the exam paper to get it right. And if you still find it's too stressful, you have a choice of 5 other questions on Paper 2, and you only have to do four of them, so don't get too worried.

lilmissprincess

Er, the one I have a problem with is Final Accounts, Can't remember what order they go in everytime I forget a vital number along the line and it kills me. I got an A for Xmas, but only cos they weren't on it, but the double entry and economics were.

PurpleFistMixer

Final Accounts as in Trading Profit and Loss and Budget Sheet? For them you.. basically just have to learn off the headings off till you can recite it off the top of your head, then it's all a question of slotting things in.
(Well, a little more than that, but all in all it's an easy enough question)
I'd be willing to bet that i can still remember the layout, despite not having a business class since last May.

lilmissprincess

Yeah..Sales, less Sales Returns, Net sales..thats it yeah? Its the end I have problems with. I can do Trading a/c, but I'm screwed for P&L.

PurpleFistMixer

Aye, once you have Gross Profit it goes...
Add: Gains (get a new gross profit figure so)
Less Expenses and Losses (add all these up and then subtract from new gross profit to get net profit)

Less Appropriations : Dividends (or whatever it's called, might be ordinary share capital but I think that's for the budget sheet) (subtract from net profit to get reserves figure)

I may have got the terms wrong, as in, the final number you get may in fact be called Net Profit or New Balance or soemthing, but other than that I think the adding system is right.

Budget Sheet is easy, just.. Fixed Assets, Current Assets, Current Liabilities, Financed By.

RefulgentGnomon

PurpleFistMixer wrote:

The way we learned it was "In for the Debit, Out for the Credit", so basically if the particular account is increasing (be it if money in bank is increasing, or amount due to creditors is increasing, or amount owed by debtors increasing, value of assets increasing, etc.) it'll go on the DR side, and if it's decreasing it'll go on the CR side.

Err... does that help at all?

That principle works for the bank side of things but its not to increase anything, e.g. increasing Creditors actually needs a CR entry.
It's a little more complicated than that.

PurpleFistMixer

Ooh yes, forgot that bit.

Another rhyme - DEAD CURL, stands for Debit your Expenses and Assets darling, Credit Ur Revenues and Liabilities.

That means if it's an expense or an asset, the side to increase on is Debit, and if it's a gain(revenue) or liability, the side to increase on is Credit.

Timans

I really am having trouble with these.

I now understand about DR and CR but, Posting from different accounts is a balls.



I didn't know i didn't have to do it though, didn't realise i had a choice.

Thanks

JBoyle4eva

Just have to say one thing:

Thanks god I'm nto doing this all over again!

lilmissprincess

Yeah, you don't have to do these, but our teacher mentioned something about getting more marks for it, becasue you get marked for every number you get right. In the theory ones you only get marked out of chunks of stuff. Posting stuff, use the LAS method. Ledger/Account/Side.
Our teacher has threatened serious bodily harm if we don't do this one for the mocks...looks like I'll learn it anyway.

PurpleFistMixer

If you do all 6 questions on the paper, they take the marks from your top 4.

skapunkkeith

i did the business today, the first paper was simple but the second was impossible for me

JBoyle4eva

PurpleFistMixer wrote:

If you do all 6 questions on the paper, they take the marks from your top 4.

My god pfm, You'd want to be speedy gonzalez to have the time to do all six. I just finished both papers in time, and that's without looking over the answers.

madbabe(",)

I did 6 on paper 1 and 5 on paper 2 and had spare time i probably did so badly!! Just remember with ledger that everything goes in twice once on the debit once on the credit!

Less stress more sucess business explains it excellently!

RefulgentGnomon

Another mnemonic used is AXEL.

Dr - Assets, Expenses
Cr - Earnings/Gains, Liabilities