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.
- Manually amending PAYE Code Number in HMRC Basic PAYE Tools 25 1
- Bank Requesting clients' tax residence 948 9
- Disclosure on Cessation Accounts 169 1
- Separate Pay runs for salary and commission 125 3
- printer paper for Certificate of Incorporation 203 5
- I'm losing the will to live... 112 1
- Sage 50 - How do I find the column headings when I export to CSV 91 4
- Auto enrolment 1,555 15
- Annual Report - How to? 250 10
- Bureau payroll software and Auto Enrolment - which is the best? 80 1
- Director's personal expenses paid by the Company 250 4
- Client's company struck off 2,028 26
- Accountants not providing all required information 112 3
- 15% restirction on lease cars 125 2
- Do you get your clients to sign their EOY EPS submission? 1,120 17
- can a dormant company make an employer pension contribution? 143 6
- Letter template 150 4
- Quote for client 415 9
- Benefit in kind calc, s.106 ITEPA 291 7
- PAYE 178 3
- HMRC BENCHMARK EXPENSES 523
- write off loan or loan to equity swap or both 459
- EPS and CIS deductions 324
- Sole trade business in UK, but the owner works from EU 306
- Construction CIS LLP Company 297
- Stamp duty on house transfer between spouses 286
- Tax Investigation - Employee Travel 241
- SAGE winforecast 221
- Overdrawn director account 208
- LIVE: Budget aftermath webinar 201