Confusion over Salary and Savings account usage

maveri software.temp at westnet.com.au
Wed Jul 3 21:20:49 EDT 2013


Hi,

First up, some info to set the context

Experience: New user
Version: 2.4.13
Platform: Windows XP
DB Type: XML
Accounting experience: Almost non existent

I'm rather confused over how I enter Income (as salary) and then distribute
it between various accounts (Savings, checking etc)

I suspect my real issue is my lack of accounting knowledge 

Here's what I AM doing, so please point out what I'm doing wrong, as
obviously what I'm doing is not correct

1. Entered $1000 as Income.salary
2. Entered $ 500 in Assets.Checking account, as transfer from Income.salary,
entered as deposit
3. Entered $ 500 in Assets.Saving account, as transfer from Income.salary,
entered as deposit

However, I now have:

Total assets $2000 which clearly isn't correct as I only have a total of
$1000 in salary

So what am I doing wrong?

Also, what is it I am misunderstanding?

I thought the process went something as follows

Money comes in as Salary, is then distributed to various accounts (checking,
savings etc) - is this not correct?

Also, since this is double entry, when money comes in as Salary, where is
the other side of the entry recorded? (i.e. It's showing as an Imbalance)

What I thought I would have ended up with is

$1000 recorded as Salary
from which $500 is then transferred to Checking account and another $500 is
transferred to savings account, total assets showing $1000 (being the sum of
$500 checking account + Savings account)

I'm just not understanding the accounting principals involve...



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