documentation error on debits/credits?

[Frank H. Ellenberger]

Hi Jeffrey,

Am 23.11.2014 um 21:23 schrieb Jeffrey H Hotchkiss:
> Hi, just making sure I understand the usage of debits and credits in
> Gnucash, as it’s been a while since I worked with accounting
> principles.
> 
> There appears to be an inconsistency in section 2.1.3 of the tutorial
> and concepts guide, here:
> http://gnucash.org/docs/v2.4/C/gnucash-guide/basics-accounting1.html#basics-accountingdouble2

Version 2.4 is really outdated - from where were you guided there?
Please use at least
http://gnucash.org/docs/v2.6/...
or the most recent nightly
http://code.gnucash.org/docs/...

>  According to the second paragraph (and a Wikipedia article on
> accounting principles), for an equity account, a debit is a decrease
> and a credit is an increase - correct? Quoting here: "In liability,
> equity and income accounts, credits increase the balance and debits
> decrease the balance."
> 
> Then why does the third paragraph say "Accountants record increases
> in asset, expense, and equity accounts on the debit (left) side, and
> they record increases in liability, revenue, and capital accounts on
> the credit (right) side” ?  (By the way, what’s the difference
> between an “equity” account and a “capital” account?)
> 
> And, under the warning at the end of the section, it says “credit is
> associated with decreases in asset, expense and equity accounts” ?
> 
> Could you explain the discrepancy? I believe that a credit increases
> an equity account, and that the third paragraph and warning paragraph
> are mistaken, is that right? I looked into the updating protocols -
> way too intimidating for me to undertake a correction.

I hope, you agree with the new version. And my congratiulations, you are
the second, who saw the mistake - after ~10 years.

> Thank you,
> 
> Jeffrey H Hotchkiss jefreiki at maine.rr.com www.jeffreiki.com 
> www.eldersbloom.org 207-618-0243

Regards
Frank