bank entries

[David Carlson]

Christine,

If you receive income you might deposit it into the bank.  If you spend
money for groceries, you use cash.  If you withdraw money from the bank you
transfer from bank to cash.

That is what double entry is about.

David C,

On Sun, Nov 26, 2017 at 6:33 PM, Christine via gnucash-user <
gnucash-user at gnucash.org> wrote:

> Hi Dave
> My accounts are Cash, Bank, Income, various expenses, and 2 people who I
> pay
> money too and who pay to the bank.
> IF I balance one of the accounts another goes wrong. All I want to do is
> add
> my bank and my cash and let gnucash do the rest (ie an income and
> expenditure report) but it is not working. Reading the literature I just
> get
> confused as I am used to DR and CR.
> Thanks anyway maybe I should look for an easier program if anyone knows of
> one
>
> Christine
>
>
> -----Original Message-----
> From: gnucash-user
> [mailto:gnucash-user-bounces+cmaloney4=talktalk.net at gnucash.org] On Behalf
> Of DaveC49
> Sent: 27 November 2017 02:20
> To: gnucash-user at gnucash.org
> Subject: Re: bank entries
>
> Christine,
>
> Gnucash is a double entry accounting system.  What this means is that any
> transaction affects at least two accounts. For example when you purchase
> something your bank account is credited by the amount of the purchase any
> purchase is also an expense so an expense account has to be debited by the
> amount of the purchase in the second component of the transaction. These
> two
> components of the one transactions are referred to in Gnucash as "splits".
> The same methodology is applied to any other sort of transaction, it will
> always consist of at least two components ( and sometimes more) affecting
> at
> least two accounts. In any single transaction the sum of the debit and the
> sum of the credit components of the splits of that transaction must be
> equal
>
> The Gnucash Tutorial and Concepts guide
> (https://www.gnucash.org/docs/v2.6/C/gnucash-guide/) along with the
> Wikipedia articles on double entry bookkeeping
> (https://en.wikipedia.org/wiki/Double-entry_bookkeeping_system will give
> you
> some background information. Gnucash follows what is called the Accounting
> Equation or American approach in this article. The article on the
> Accounting
> equation (https://en.wikipedia.org/wiki/Accounting_equation) also provides
> some useful background.
>
> That said, it is possible when you are entering a transaction and create
> the
> deposit split to your bank account (this will be a debit to that account if
> you use the accounting terms) what you are seeing is the other
> component/split of the transaction being automatically created. If you have
> not yet created  appropriate income accounts, it may be assigning your bank
> account as the default account for this second split which will be  a
> credit. If you click in the account field in the second split, you should
> be
> able to select a different account from your chart of accounts.
>
> For a deposit to your bank account, the account for the second split would
> normally be an income account for money coming from an external source or
> another asset account if you are transferring money between accounts ofr
> example.
>
>
> David
>
>
>
> -----
> David Cousens
> --
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