documentation error on debits/credits?

[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

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.

Thank you,

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