Transfer query.

[Adrien Monteleone]

When using informal labels, it is important to keep in mind that they only apply to the account for that register, they do not always have meaning per split.

Debit/Credit however will always be the same no matter which side of the transaction you are viewing. Additionally, the columns don’t move on you. Debit is always on the left and Credit always on the right.


The expanded Accounting Equation is a helpful reminder of which to do:


Assets = Liabilities + Equity + (Revenue - Expenses)


If you re-arrange for all positive signs you get:


Assets + Expenses = Liabilities + Equity + Revenue


Debit: Left Side of the equation and left column in the register

Credit: Right Side of the equation and right column in the register


> On Jun 13, 2017, at 1:00 PM, Eric Coates <eric.coates at sky.com> wrote:
> 
> 
> Hi Ken
> 
> I had a similar problem when I started with gnuCash - and so, it seems, have lots of other people:
> 
> I am guessing that when you look at the tab for your current account two of the headings are "Debit" and "Credit" and when you pay your salary into the account the number appears in the "Credit" section. If that is the case first a word of explanation then the correction, if it isn't the case stop reading now, you'll just be wasting time!
> 
> "Credit" and "Debit" are technical terms that accountants use in a way somewhat different from "real" people. As a way of understanding this it may help to think that "ordinary" people tend to think in terms of how a transaction affects them, accountants think in terms of how it affects the counter party (when you deposit money in a bank you see it as crediting you, an accountant sees it as creating a debt the bank owes you). If anyone knows of an easier/more correct way to explain it I, for one, would like to hear it
> 
> The solution is to click Edit/Preferences and choose the Account tab on the left side of the window. If I'm right in my guess (no guarantees!) you'll see the "Use formal accounting labels" is ticked. Untick it and close the window. Back in the main window close all open tabs and reopen your current account.
> 
> If I'm right in my guess (no guarantees!) the "Debit" and "Credit" headings will have changed to "Increase" and "Decrease". (Headings in your credit card tab will also have changed to "Payment" and "Charge"). These heading can be interpreted in an "everyday" sense and ... you'll see your payments INTO the account appear as decreases and payments FROM the account appear as increases which is wrong.
> 
> I know of no way to automatically correct the entries (someone else might) so I'm afraid you could be in for quite a bit of work. Sorry.
> 
> Take care
> 
> Eric
> 
> 
> On 13/06/17 17:20, Ken Tibbles wrote:
>> Hi,
>> 
>> 
>> I am trying to move from "MoneyMaker Ex" and use Gnucash for my home accounts instead.
>> 
>> 
>> However, when trying to enter the payment of my credit card balance I create a payment in my current accout (which shows as a withdrawl) with the transfer to the credit account (an account under Liabilities) which then shows as a  payment not a receipt.  Therefore my credit card balance has doubled not reduced to zero.
>> 
>> 
>> What am I doing wrong?
>> 
>> 
>> Regards
>> 
>> Ken.
>> 
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