accounting
Hi
I was showing MD to my friend who was looking for a personal software for his use. when he saw my account entries he pointed out that I was doing incorrect entries. eg if i deposit cash into my bank account i show the amount in the deposit column of the bank account and debit the cash account in Md. My friend says in accounting the rule is debit the receiver and credit the giver in our books . so in the above example i should debit the bank account and credit the cash account . Pls let me know if i am following the correct method in MD
Tks
Shamsu
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1 Posted by dwg on 08 Jul, 2022 05:46 AM
I'm a fellow user.
The statement "debit the receiver and credit the giver in our books" is illogical. it means you take the money from (debit) the person who is receiving it and you give money (credit) to the person who is giving it.
If you are depositing money into your bank account you expect the balance to increase ie. you are crediting the bank account.
You debit the account the money is coming from and credit the account the money is going to.
Support Staff 2 Posted by Ethan on 09 Jul, 2022 10:18 PM
I agree with the above post. If that still doesn't make sense to you, perhaps try describing a few specific transactions in more detail, along with a screenshot of how they are appearing in your register, and how you think they are incorrect. If you're not sure how to take a screenshot, please see http://www.take-a-screenshot.org/
Ethan
Infinite Kind Support
System closed this discussion on 08 Oct, 2022 10:20 PM.