Fwd: Re: Paying Expenses

[Darryll Truchan]

I must agree with Leo.

I am not an accountant, I am not a bank.
I want to see my money from my perspective.  

How about another choice of display prefs?


On Saturday July 21 2001 09:15, you wrote:
> On Sat, Jul 21, 2001 at 12:45:36AM -0700, Leo L. Schwab wrote:
> > On Tue, Jul 17, 2001 at 05:54:33PM -0500, Bill Gribble wrote:
> > > btw: I'm using "debit" and "credit" in the accounting sense, which is
> > > probably opposite of your usual usage of the terms.  To "credit" a
> > > bank account means to take money OUT of it, and to "debit" a bank
> > > account means to put money IN it.
> >
> >      That's nuts.  What's the justification?
>
> That's just the Way It Is.  If you ever take an accounting class they
> will teach it that way, and if you use "debit" to mean withdrawal when
> you are talking to your accountant you will confuse them.  debit means
> money in, credit means money out.
>
> Gnucash will show things this way if you select "always use accounting
> labels" in the options.
>
> The reason you know it the way you do is, as Robert Merkel said,
> because the bank prints out paperwork that is from its point of view,
> where your bank account is a liability instead of an asset (they owe
> you the money).  For a liability, a debit decreases the balance and a
> credit increases it... in the bank's case, if you take money out of
> the account, decreasing the debt, the bank is essentially paying off
> its debt (putting money in), so it's a debit.
>
> b.g.
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