debit/credit rules - student question
I have asked this elsewhere but no-one has been able to answer this.. can anyone help here?
I am working through the Woods book to support my course material as has been suggested (by my course material and by my tutor) and it is proving helpful in confirming my knowledge with the exercises. However there is something that I could do with a little more clarification on.
When deciding whether to debit or credit an account I work on the Debit the receiver and Credit the giver system.... but the Woods book says there are instances where this is not applicable. The book gave a really long method of knowing which to do, but there is no way I am going to remember all that.
A number of methods have been suggested in various books to help you make entries to the correct account and some students find them sufficient. I was taught to debit increases in assets and expenses and to credit increases in income and liabilities, a useful rule, but one that is sadly incomplete. Another rule often suggested is to debit the receiver and credit the giver; again a useful but sadly incomplete principle to adopt.
But the book doesn't explain why it is incomplete.
Can anyone tell me where do you not debit the receiver and credit the giver?
My tutor couldn't answer the question, she just said she never uses that method.
- ACCA practice certificates 49 1
- Accounts submitted to a the charities comission 186 3
- FILING COMPANY ACCOUNTS 1,085 32
- French Excise Duty - Help Please! 165 2
- What would you do in this situation? 684 14
- Dress code 507 13
- What quality paper do you use for correspondence? 522 16
- Project being run jointly 214 3
- Buying Microsoft's Surface Pro 3 320 4
- Companies House 617 9
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 377 11
- Where to start to get any of jobs in Finance and Accounting Industry 741 9
- How much did you pay for your website 1,454 25
- Help Required 432 10
- directors control and tax problems 327 5
- Fastest Software 812 13
- What's in a name ? 418 5
- Straightforward email correspondence or PDF letter attached to blank email? 333 4
- Bulk Invoicing 200 6
- Travel and Substinance expenses while abroad 196 3
- CTA study material 718
- Anyone have clients that use Pay4Later to offer customers credit? 441
- Employment related securities question 278
- Recommendations for Ross Martin Tax consultancy 2014 271
- AIM Stocks and IHT 256
- Raiders of the Lost Tax File 234
- Tax Relief for overseas employees 219
- Expat pension contributions? 208
- Trust for Employee 205
- Quickbooks losing VAT return data 190