[GNC] I need basic help

[Adrien Monteleone]

On 10/21/23 11:38 AM, R Losey wrote:
> On Fri, Oct 20, 2023 at 11:57 AM Michael or Penny Novack <
> stepbystepfarm at comcast.net> wrote:
> 
>> On 10/20/2023 11:47 AM, Edwin Booth wrote:
>>> Thank you Michael. The ancient history of these terms is really
>>> interesting. I don’t really “get it” yet but I see the idea here. Very
>>> hard to set aside the use of credit and debit in the modern sense and
>>> use them in a very different way. Counter intuitive.
>>
>> Not exactly. The confusion over "modern sense" is something else. Thus
>> when R. Losey says:
>>
>> "It*IS*  hard because the accounting use of debit/credit is different from
>> the common or colloquial usage of the words. In everyday usage, people tend
>> to use "debit" as a synonym for "decrease" and "credit" to mean "increase",
>> and that is NOT the case in accounting, as the tutorials helpfully
>> explain."
>>
>> .... No, the confusion is NOT because accounting use is different but
>> confusion over whose books are you looking at. We are sued to seeing
>> these "in reverse" on statements we from from the bank for our bank
>> accounts or credit card accounts because on those it is from THEIR point
>> of view, not ours.
>>
> 
> I disagree; I've heard people in non-financial situations use "debit" to
> mean "decrease" and "credit" for "increase"; such as "His recent actions
> have credited his stock of goodwill "  or "he owes me; I have a huge credit
> balance with him".

The key phrase is 'with him', which means 'in his books' thus from 'his' 
perspective your 'account' has a credit.

But in *your* books, that same account would have a debit.

It IS a matter of perspective. The terms have consistent meanings.
> 
> But this is starting to get away from GnuCash.

It is more accounting than 'how to do it in GnuCash' but we get this 
question often enough, it is worth addressing.

Regards,
Adrien