Hi All, Hope you can help as this may be a case of pointing me to an accounting for dummies book/website, but I did search the forum/help file first in case it’s a quickfile thing or accounting basics I’m not grasping!
Basically when reviewing my Chart of Nominal Accounts, I’ve noticed a number of accounts in the Assets and Liabilities section, including a ‘real’ account I added, the credit card account and the ‘proprietors Drawings Account’ seem to be reversed (to me anyway) regards credit and debt.
Any direction/explanation appreciated. Many thanks.
Debits and credits are reversed in double entry accounting for bank accounts so they will appear on the chart of accounts as the opposite to what you’d expect. I’ve elaborated on this here:
Yep, makes sense in ‘theoretical’ terms, and I kind of guessed it was a double entry thing. It’s just a bit hard getting my head around it when my ‘sales’ in P&L show a client sale, but the ‘nominal’ bank account it’s paid into has it in red! Conversely my parts ‘purchases’ are red in P&L, but green on the card they’ve been paid for ?!?!? :-/
Will read up some more and try and re-align my neurons lol, think a basic book-keeping course is on order!
