setting up mortgage liability and paying it off from a check account asset...

[Morgan Read]

On 13/01/17 16:40, David T. wrote:
> 
>> On Jan 13, 2017, at 7:04 PM, Morgan Read <mstuff at read.org.nz> wrote:
>>
>> On 13/01/17 04:07, David T. wrote:
>>>
>>>> On Jan 13, 2017, at 8:05 AM, Buddha Buck <blaisepascal at gmail.com
>>>> <mailto:blaisepascal at gmail.com>> wrote:
>>>>
>>>> I just tried toggling the "Reverse Balanced accounts" options myself.
>>>> This
>>>> suggests (and looking at my gnucash xml file corroborates) that GnuCash
>>>> internally treats debits as positive and credits as negative. So after
>>>> setting "reverse balanced accounts" to none, I get positive (debit)
>>>> balances in assets, and negative (credit) balances in liabilities. This
>>>> also indicates I've received a total negative salary, etc.
>>>
>>> Note: GnuCash follows accounting practice in using the terms “Credit”
>>> and “Debit.” See:
>>>
>>> https://www.gnucash.org/docs/v2.6/C/gnucash-guide/basics-accounting1.html#basics-accountingdouble2
>>>
>> Thanks Peter, Buddha and David - I think I've got it sorted now.  David,
>> yes - I was half expecting a RTFM, so thanks for the pointer :-)
>>
> 
> Morgan,
> 
> Honestly, I was just noting the somewhat difficult terminological challenges that accounting (and GnuCash) offers mortals. I know I still can’t keep them straight.
> 
> David
Mantra from my intro to book-keeping:
*1 An account goes into credit when money is taken from it because that
account is now a creditor to the debtor account to which it went;
*2 An account goes into debit when money is given to it because that
account is now a debtor to the creditor account from which it came

Double entry is fine when you're dealing with both entries 1 and 2, but
when you only look at one side of the equation it all looks a little
weird...

I really don't mind being told to read manuals - what's good for the
goose is good for the gander - I often suggest my wife read the manual...

Cheers
M
-- 
Morgan Read
United Kingdom
<mailto:mstuffATreadDOTorgDOTnz>

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