QuickBooks tips by Bookkeeper Craig
One of the basic things is to understand what is a credit and debit. I ask you, "when you put money in your checking account, is it a credit or debit?".
The answer is a debit. Surprised? The bank statement shows it as a credit. Why? When you deposit funds in your checking account, it is a liability for the bank because they owe you that money. So the bank puts it under the credit side. From your side it is a debit.
Debit increases and Credit decreases assets.
Credit increased and Debit decreases liabilities, equity, income, and expenses.
Keep this in mind when you do general entries in you accounting system.
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