[GNC] Your Classification / Tagging Implementation

[David Cousens]

Will,

The confusion often arises because your bank regards a savings/checking
account in your name as a liability in their books while in your own books
it is an asset. Conversely your credit card is an asset in the bank's books
and a liability in yours

See
https://www.gnucash.org/docs/v4/C/gnucash-guide/chapter_accts.html#:~:text=The%20accounting%20equation%20that%20links,rearranged%20Assets%20%2D%20Liabilities%20%3D%20Equity.

Wikipedia also has a few good articles dealing with the Accounting equation
and Debits and Credits to accounts.

Summary Accounting equation
Assets = Liabilities +Equity + Income - Expenses

If you rearrange it as
Assets +Expenses = Liabilities +Equity +Income
then
Increases to account balances of accounts of the type on the LHS are Debits
and decreases are Credits
and conversely
Increase to account balances for accounts on the RHS are Credits and
decreases are Debits.

David



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David Cousens
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