On 4/16/19 5:41 AM, Michael or Penny Novack wrote:
On 4/15/2019 6:11 PM, ToddAndMargo via gnucash-user wrote:
Hi All,
Now that I am feeling brave coming off of creating a charge
card account, I decided to create a saving account.
My bank statement shows deposits as positive numbers and
withdrawals as negative numbers, so I decided to follow suite
Okay, I set the initial test balance to +100. It shows in
balance as 100. All is well so far.
Then I put 10 in the debit column of the account, meaning I
withdrew 10 from the account.
STOP ---- ask yourself, are you trying to keep books from the point of
view of yourself of from the point of view of the bank?
What is a positive for the bank is a negative for you and vice versa.
Increases to the account FROM YOUR POINT OF VIEW are debits. Decreases
are credits. That is because the type of account FROM YOUR POINT OF VIEW
is an asset. From the bank's point of view, it is a liability (they owe
you the money in your account) so this is reversed.
We cannot tell if you were right about that "all is well so far" unless
you tell us whether that was a $100 debit balance of a $100 credit balance.
Michael D Novack
Wonderful description! Thank you!
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