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Transferring funds form asset account to liability account.

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Victor

16 Feb, 2025 12:55 AM

If I transfer cash from an asset account to a liability account, shouldn't both the asset account and the liabilty account decrease? The opposite happens: the cash on hand (asset) account decreases, but the liabiltiy account increases (instead of deceasing as it should).

1. 1 Posted by dwg on 16 Feb, 2025 01:00 AM

   

   I would expect the liability account to have a negative balance and transferring ash to that account to decrease the liability amount.

   So the first question is does the Liability account have a negative balance?

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2. 2 Posted by Stuart Beesley ... on 16 Feb, 2025 07:51 AM

   

   Define “increases”. As dwg says, we need to talk in actual balance value and sign terms.

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3. 3 Posted by Stuart Beesley ... on 18 Feb, 2025 07:26 AM

   

   @Victor?

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