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

Charge a Customer an Account Fee

Clear the Historical Balancing Account

Enter ATO Reportable Sub-Contractor Payments

Enter Capital into the Business

Enter Child Support Payments

Enter Government Support Payments

Enter Prepaid Expenses and Amortising Costs

Enter Workers Compensation

Handle Paypal (and Similar)

Manage Petty Cash

Recover Bad Debts

Remove Duplicate Payments in Closed Period

Rounding Issues

Set up a Loan Account

Share Utility Expenses with other Businesses

Suggested End Of Month Procedures

Variance in Trade Creditors and Creditor List Total

Variance in Trade Debtors

Withhold Tax

Work with Tax Codes in Jim2

Write off a Bad Debt

Write off Fixed Asset