Confusion over Salary and Savings account usage

Robert Heller heller at deepsoft.com
Thu Jul 4 09:52:19 EDT 2013


At Wed, 3 Jul 2013 19:36:31 -0700 (PDT) maveri <software.temp at westnet.com.au> wrote:

> 
> Thank you Peter, how you suggested it should be done, worked perfectly
> 
> I was making the mistake of thinking of salary as being on the income side
> of my accounts only and was thinking how I was supposed to show the debit
> side against my employer!

One way of thining about double-entry bookkeepping is the idea that money is 
never 'created' nor 'destroyed', that is, money never 'appears' from nowhere 
nor does it 'vanish'.  All you ever have is transfers from one account to 
another.  When you get your paycheck it is simply a transfer from Income to 
Checking & Savings.  Certain accounts reflect actually money on hand (like 
your checking or savings account) and other accounts just account for where 
the money 'came from' or 'went' (income or expense accounts) and other 
accounts relate to debts or property assets (mortage or stock).

> 
> To recap (for others)
> 
> I entered $1000 as Salary
> Split the transaction into
> 1 x $500 to Cash in wallet
> 1 x $500 to Savings
> 
> Everything balances as it should
> 
> Thanks for your help - much appreciated
> 
> Status: Solved
> 
> 
> 
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-- 
Robert Heller             -- 978-544-6933 / heller at deepsoft.com
Deepwoods Software        -- http://www.deepsoft.com/
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