[GNC] Credit Card Format Good?

[Mike or Penny Novack]

On 9/15/2019 10:01 PM, Peter West wrote:
> . That means that increases in an Asset are debits, while decreases are credits; and increases in Liabilities (or Equity) are credits, while decreases are debits.
>
> Income increases assets; an increase in an asset is a debit; therefore the balancing entry for income must be a credit.
> Expenses decrease assets; a decrease in an asset is a credit; therefore the balancing entry for expenses must be a debit.
>
Not necessarily, and that needs to be stressed precisely because this 
began with credit cards.

An income item will increase assets OR decrease liabilities << in either 
case, a debit >>
An expense will decrease assets OR increase liabilities << in either 
case, a credit >>

For example, if you paid an expense with a check, db expense; cr 
checking but if you paid with the credit card would be db expense; cr 
credit card.

Then when you pay against credit card charges might be:
   1) balance paid in full, no interest ----- db credit card; cr checking
   2) if interest part of that payment a split  db credit card, db 
credit card interest; cr checking
        (you might instead choose to have entered the interest as a 
credit card transaction first)

Michael D Novack