FrontAccounting forum — Hi All

Re: Hi All

2008-12-17T08:15:06Z

The reason you are confused about credit is probably because when you're bank tells you you have 'Credit' in your account - it actually means from THEIR ledger's perspective. When you deposit money into your account, they DR their cash account, and CR your customer account.

Assets Up = CR (for you).

Re: Hi All

2008-10-30T08:01:18Z

Alvin illustrates what is going on in the accountancy in a fantastic way.
Bank Deposits. If you enter a liability account with an amount and process the payment,it will be shown exactly as alvin illustrates.

Joe

Re: Hi All

2008-10-30T05:28:43Z

yes I am experiencing this as well..

I entered a deposit into the checking account with a liability account as the other account so as to create a loan to the company. When I checked my bank statement, in FA, it shows a negative balance.

I then voided this transaction, and tried just a journal entry, which was to credit the checking account and the debit side to the liability account. Again when I checked the "bank statement" balance, it shows a negative balance.

It seems kindof counter-intuitive that making a deposit into the checking account should take money out of it.

Re: Hi All

2008-09-19T07:30:47Z

thank you Alvin for your reply.

if i pay money into my account surely that's classed as a credit in to my account, if a bank account is treated as a income account.

so if thats the case, money i take from customers is a credit into my account and money i pay to my suppliers i.e with draw from my account is a debit,

but on my bank statment it shows money into the account under the debit heading no the credit.

steve

Re: Hi All

2008-09-18T16:21:12Z

Here is a little chart I use when I can not remember how accounts are debited, credited, a bank account would be an asset account.

Account Type Debit Credit

ASSETS Increases Decreases
LIABILITIES    Decreases Increases
EQUITY    Decreases Increases
INCOME    Decreases Increases
EXPENSES    Increases Decreases

Enjoy,

Alvin

Hi All

2008-09-18T11:22:18Z

I have just started using this software and i am really pleased with it, its perfect for our small company,

i have 1 question and im sorry if i have posted it into the wrong area.

i have created 1 customer and 1 supplier for testing,

i have taken £100 payment from my customer and i have paid to my supplier £40

when i goto banking and general leder - bank statment it shows a £100 debit and a £40 credit

am i wrong but i thought a payment into the business i.e a payment into my bank account would be classed as a credit and a withdraw from the account i.e a payment to a supplier would be a debit.

i am using 2.0.1 please advise

steve