Don't understand imbalance
laidlaws at hotkey.net.au
Fri Nov 21 16:29:39 EST 2008
O.K. Harold. You aren't the only one who is confused by debits and credits.
Just remember that your books are the opposite of the bank's.
You can write the check in favour of the credit card, just don't use the
credit card *account.*
On Saturday 22 November 2008 8:23:23 am Harold wrote:
> Thanks Doug. I tend to get confused (I know I shouldn't but I do) when
> people use debit and credit. I understand it better when I can see whether
> it is added to or taken away. If I take the money away from my checking and
> send it to the credit card company and at the same time the splits are
> added to the expense for those accounts, then that makes sense to me. Gosh,
> I can't imagine all of this not being confusing to someone else.
> Thanks everyone. I will delete and re-enter (as I have already posted) and
> will post back the result.
> --- On Fri, 11/21/08, Doug Laidlaw <laidlaws at hotkey.net.au> wrote:
> From: Doug Laidlaw <laidlaws at hotkey.net.au>
> Subject: Re: Don't understand imbalance
> To: gnucash-user at gnucash.org
> Date: Friday, November 21, 2008, 2:49 PM
> On Saturday 22 November 2008 7:28:14 am Doug Laidlaw wrote:
> > On Saturday 22 November 2008 7:05:14 am Elizabeth Dodd wrote:
> > > On Sat, 22 Nov 2008, Harold wrote:
> > > > Description
> Account Deposit
> > > > Withdrawal credit
> > > > 366.90 health
> ins 292.40
> > > > books
> 12.00 medical
> > > > costs 62.50 bank
> > > > Which 366.90 is the one not needed? Hope this comes thru sort of
> in the
> > > > columns as I intended.
> > >
> > > all of those lines should be there.
> > > (ignoring the other comments on how your books are organised)
> > > so this is not the 'imbalance problem'
> > > i would delete and try again.
> > I would defer to you, Elizabeth, but on the example (the columns got out
> > sync in your reply) I see a credit card entry and a bank account entry
> > on the RH side. Only one can be right. Assuming that it is a charge to
> > the credit card, it didn't affect the bank balance as well. That is
> > line that should be deleted.
> > Doug.
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> As usual, I didn't read the thread from the beginning.
> What is really happening is this:
> Harold gets a credit card statement. He should enter that up under Credit
> Card as
> Health Ins: $292.40
> Books 12.00
> Medical Costs 62.50
> Credit entry for the total to balance: $366.90
> THEN pay the balance out of the bank account:
> Debit Credit Card (reduces the liability) $366.90
> Credit Bank account (reduces the asset) $366.90
> If Harold wants to keep doing it his way, leave the credit card account
> right out of it. Just debit each expense account, and credit Bank. But the
> first way is more "correct," I think. It follows the rule of entering up
> everything from your bank statements before bringing down a balance to pay.
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