debits, credits and reversals.

[Jim & Grace Flowers]

Colin,

I don't know of any philosophical reason, but there is a definite
bookkeeping reason.  One reason why debits must be recorded as credits and
credits recorded as debits in a reversing transaction is for audit purposes.
You personally may not need it for your personal accounts, but it is
definitely needed for business transactions.

To keep bookkeeping and accounting rules as simple and uncomplicated as
possible, the same rules apply to both personal and business transactions.

Hope this helps.

Jim

-----Original Message-----
From: gnucash-user-bounces+dondiegoflores=verizon.net at gnucash.org
[mailto:gnucash-user-bounces+dondiegoflores=verizon.net at gnucash.org] On
Behalf Of Colin Scott
Sent: Sunday, August 28, 2011 2:18 AM
To: gnucash-user at gnucash.org
Cc: cscott at cix.compulink.co.uk
Subject: debits, credits and reversals.


>From time to time I need to reverse a transaction, for a number of 
possible reasons.   Gnucash insists that to make the reversing transaction 
I must use a debit amount to replace the credit, and a credit amount to 
replace the debit.  So far so good.  However, It seems to me that the 
purpose of the transaction it would be clearer if I were able to reverse 
the sign of the values rather than their colums - ie, enter a negative 
credit and a negative debit instead of a debit and a credit.

Is there some deep philosophical (or book-keeping!) reason why this is so, 
and that negative values are not permitted except as balances?  I have 
certainly been able to use negatives in other accounting systems I have 
used ...

Colin

_______________________________________________
gnucash-user mailing list
gnucash-user at gnucash.org
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.