Understanding Debits and Credits

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This section explains the effect of posting debit and credit entries against the different areas of the general ledger.

 

Type

Debit

Credit

Asset

Increases

Decreases

Liability

Decreases

Increases

Income

Decreases

Increases

Expense

Increases

Decreases

 

Further information

Accounts Security

Debtors

Creditors

Advanced Creditors

General Ledger

Account Inquiry

Transaction Journal

General Journals

GST Sessions and the BAS

Credit Cards

End of Financial Year

Clear the Historical Balancing Account

Suggested End Of Month Procedures

Enter a Capital Asset

Enter Child Support Payments

Enter Government Support Payments

Enter Prepaid Expenses and Amortising Costs

Purchase a Capital Asset Under Finance

Handle Paypal (and Similar)

Record Debtors/Creditors Contras

Rounding Issues

Sell a Company Asset

Set up a Loan Account

ATO Reportable Sub-Contractor Payments

Share Utility Expenses with other Businesses

Use Debtors and Creditors Adjustments

Variance in Trade Creditors and Creditor List Total

Recover Bad Debts

Withhold Tax

Write off a Bad Debt

Write off Fixed Asset

Work with Tax Codes in Jim2