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.
- Any Scottish members out there? 6,913 258
- Standard 'email' template system 731 12
- Shutting down a company with creditors 838 11
- Private Residence Election for CGT purposes 245 4
- Artificially reducing profits by bonus accrual 224 10
- business card address 60 3
- Can anyone recommend a good document scanner? 85 5
- Expenses of overseas employment 78 1
- Tax implications for client leaving share incentive plan 68 2
- New Client in dispute with old accountant 153 2
- Starting as sole trader from abroad 120 5
- VAT Romania - how to register 193 4
- Donations (to a school!) 181 5
- Repairs after a rental business ends 200 6
- Am I allowed Rent A Room Relief? 487 10
- Beaters and allowable exenses 153 2
- Family loan 276 7
- FL Memo - Any Good 485 8
- 50% Shareholder & Director stealing money from the business 338 8
- Looking for subcontract work! 299 5
- Raiders of the Lost Tax File 1,093
- Chartered Accountant in County Down N.Ireland 358
- IPP (International Pension Plan) income 296
- National Insurance 260
- Joint construction arrangement CIS and VAT 231
- valuation of intangible asset FRS10 and FRS20 231
- Payments on account coded out?? 218
- Cass 5 FCA Client Money Software recomendation 215
- Non Resident 177
- Franchise income and costs 169