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                              TO:  Interested Ministries                                                                                                                                FROM: Jim Bramer, Retired CPA
                                                                                                                                                                                                             FILE:  0629-01/qbb

                              RE:  QB Journal Entries  - via Debit and Journals                                                                                    UPTD: April 30, 2008  

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        As explained when you go to  0009,  the terms DEBIT and CREDIT have various meanings, depending on your frame of reference. For example,  the word DEBIT often has a negative financial connotation, such as when you use a DEBIT Card  and you, in essence,  write a check against your Bank Account.  Of course, when you use a CREDIT card, you are still incurring an expenditure, even if you defer reducing your Bank Account. 
        On the other hand, in double entry accounting you can make DEBIT entries for a positive financial connotation, such as to increase assets .... or to reduce liabilities ..... or a DEBIT entry can have a "not good" effect when it increases expenses or decreases income.  In like fashion, CREDIT entries can not only increase income, but they can also increase debts or reduce your assets.  Oh my ....... 
        QuickBooks (TM) (QB)  was designed to reduce these concerns and they have substituted the DEBIT and CREDIT columnar heading terms within various QB registers to something that is hopefully more meaningful -- see below:

       Bank Account - - - 

• Payment
• Deposit

       Accounts Receivable - - -

• Charge
• Paid

       Accounts Payable - - -

• Billed
• Paid

       Credit Card - - -

• Charged    
• Payment

        Other Liabilities and Equity (Fund Bal) Accounts - - - 

• Increase
• Decrease

        However, this approach can be a challenge to QB users when they use the QB Journal Entry feature -- a user needs to know the effect within applicable QB Registers of their QB Journal Entry when they make DEBIT and CREDIT entries.  
        First, please click here  and visit a very special lady.  ALICE is an expert along these lines and can help you understand  DEBIT and CREDIT double entries.  Then, please remember ALICE as you also use the following in effectively making QB Journal Entries.  

		And you want to			Then	the
		make the QB Acct Bal:			Journal Entry amt
If the Account		Larger	Smaller		is posted as a:
is a QB Type:		Title in the QB Register is:			DEBIT	CREDIT
ASSETS:
Bank		Deposit			XXX
			Payment			XXX
Acct Rec		Charged			XXX
			Paid			XXX
Allow Bad Debts		Increase				XXX
Type: Other Asset			Decrease		XXX
Fixed or Other		Increase			XXX
			Decrease			XXX
Accum Deprec		Increase				XXX
			Decrease		XXX
LIABILITIES:
Accts Payable		Billed				XXX
			Paid		XXX
Credit Card		Charged				XXX
			Payment		XXX
Other Liabilities		Increase				XXX
			Decrease		XXX
EQUITY ACCTS:
All Fund		Increase				XXX
Balance Accts			Decrease		XXX

        QB Income and Expense Accounts have no QB Registers per se.  Income and Expense information flows from QB Reports with dollar amounts in various optional columnar settings.
        We trust this information is helpful.

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      Please Click here for more topics having to do with the use of "QuickBooks and Ministry Fund Accounting"  on www.bcidot.org.  The bulk of this Publication originated in April 2000.and was UPTD: April 30, 2008      

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       (1) An Online document, or WRIT (Writing), may be applicable to all Ministries, or it may be designed for just groups like: Evangelical Church, School, Missionary Agency or Organization, Christian Camp / Conference, or other named group.
        (2) WRIT formats include the perspective of  Jim@bcidot.org   via IOMs (Inter-Office Memos) to the Ministry Finance Team (MFTeam); THRDs, a hypothetical Online conversation with members of the MFTeam; GLEANINGS, or Scripture within context of the MFTeam; FWIW; A periodic editorial (For What it is Worth); TRUISM, or believed Ministry Finance principles; and FAQ, response to Frequently Asked Questions

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