Quick Tip for Unit 3/4 Accounting Students - General Ledgers

[siddhartharora]

Hey everyone!

Now my Accounting teacher is a bit of a weirdo, but he's given our class, a pretty quick and easy to remember trick in order to identify whether an asset is increased by Debit, decreased by Credit, and so forth for all the other categories.

O = Owner's Equity, A= Assets, L= Liabilities, E= Expenses, R= Revenue
C= Credit, D= Debit

C D C D C
O A L E R
D C D C D

If the C is above the category, that means it is increased by Credit, but if it is under, it means it is decreased by Credit.
In example, for Owner's Equity, C is above, meaning it is increased by Credit, and D is below, meaning it is decreased by Debit.

I couldn't really get the actual thing with the arrows and stuff here, but you get the idea I guess. This way you can go into the exam and jot this down somewhere quickly and identify each transaction with ease. I personally found this helpful, let me know what you think

[hjm2]

The above method is pretty good, this is what my teacher taught us.

↑ A E    = Debit
↓ L P R = Debit

↓ A E    = Credit
↑ L P R = Credit

He'd always say "arrows apart, arrows together, alphabetical order, dog crap". No shit, but it worked ahaha.

[availn]

My class right now is learning PALER rather than OALER, with profit replacing OE. I just do it how I learnt it in 1/2. Assets are on the left hand side and Liabilities and OE are on the right hand side, of both the Balance Sheet and the General Ledger. Then it's just expenses are debit, and revenues are credit.