It’s amazing how much you know. Whether you’re fully qualified or part qualified the professional exams with ACCA and CIMA are very comprehensive and as such anybody who has passed exams has proved that they have the ability to learn, comprehend and explain various technical topics.
As we progress through our studies we soon start to take certain things for granted. Take debits and credits for example. Ask any qualified accountant which side debits and credits go and they will tell you (hopefully!) without even thinking.
I was recently teaching a group that were new to the joys of double entry. Some of them were initially finding it a bit of a struggle to remember which side the debit and credit went.
A couple of quick memory techniques for anyone starting out on double entry bookkeeping which will help you remember that debits go on the left and credits on the right:
Think of the Australian rock band AC/DC or the electrical system AC/DC and then remember that A/C’s = D’s and C’s [Accounts = Debits (on the left) and Credits (on the right)].
2. The driving reminder.
WARNING – I’d only recommend that you use this is you’re from one of the countries that drive on the left such as the UK, Australia, Hong Kong, Bangladesh, Malaysia and South Africa (there are other countries that drive on the left but for brevity sake I won’t list them all here!)
If you think that you Drive on the left but Crash on the right then it should help you remember that you Debit on the left but Credit on the right.
Again, it’s probably not worth using this memory technique if you’re from one of those countries that drive on the right!