[GNC] re I need basic help
Neil Campbell
neilcamp65 at gmail.com
Wed Oct 25 12:36:22 EDT 2023
Hello Christopher
As a non-accountant (although I pretend to be one sometimes) I can't figure
out Dr/Cr except that Dr=left,Cr=right.
As a non-accountant, this simple way of looking at it may help with understanding Debits and Credits.
You always Debit the receiving account and credit the parting account.
So, for example, If you run a cash business and you bank $100, the bank received the money and you parted with goods or services which are called Sales, so you Debit Bank and Credit Sales. If you have a Debtors system then this same transaction would be Debit Bank (receiving the money) and Credit the Debtor (parting with the money).
This simple test can be applied to any transaction and it works every time. You will soon become used to the logic involved.
Hope this helps.
Neil
neilcamp65 at gmail.com
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