[GNC] Recommended Method of Entry for IRA Distributions

[R Losey]

Thanks; I know the information is out there, but intuitively, it doesn't
make sense to me that depositing funds to my bank account is a "debit"
transaction to the bank. It comes from the concept of credit being "added
to" and debit being "substracted from", I suppose.

Is the "Debit on the left" and "Credit on the right" true in general
accounting, or just GnuCash?

I've played with the toggling, but I like the informal names; it is much
more intuitive, and I don't see a need to potentially confuse myself.


On Wed, Jan 11, 2023 at 6:34 PM Adrien Monteleone <
adrien.monteleone at lusfiber.net> wrote:

> For completeness and posterity, that would be:
>
> Dr. Assets:Bank
> Dr. Expenses:Tax
>    Cr. Assets:Fund
>
> If you're ever unsure as to what the 'formal' column labels would be,
> you can always toggle Preferences > Accounts > Labels > Use formal
> accounting labels while viewing a register in question. They toggle in
> the view as you toggle the preference. (you don't need to commit the
> preference first.)
>
> Another easy to remember tip:
>
> Debit is ALWAYS on the left
> Credit is ALWAYS on the right
>
> This coincides with the Accounting Equation:
>
> Assets = Liabilities + Equity
>
> and the expanded version:
>
> Assets + Expenses = Liabilities + Retained Earnings + Income
>
> Assets & Expenses (on the left of the '=') are increased via Debits
> (left column)
>
> Liabilities, Retained Earnings (Equity), & Income (on the right of the
> '=') are increased via Credits (right column)
>
> Because:
>
> Debits = Credits
>
> Hope that helps!
>
> Regards,
> Adrien
>
> On 1/11/23 6:05 PM, R Losey wrote:
> > I apologize for not using "debit" and "credit" terms, but I'm not sure
> I'd
> > get them right.
>
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-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8