QB Journal Entries       0629-01  ZZqbb

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

                              RE:  QB Journal Entries  - via the Debit/Credit process                                      ORIGINATED: April 2000


     As explained when you go to  ALICE,  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.


      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: March 09, 2012      

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