For people with past issues affecting their current ability to open a checking account, second …
Credit Bank Accountloan bank account
Account statement - If something comes into my account, is it a charge or credit to my account?
This will make the bank even more bewildering because it uses the concepts from its own point of view. Depending on the type of wire transfers, but here are the most frequent for a private account. Payments on a loans granted for an installation (house/car): credits for the loans account, debits for the capital account for the car/house, and so on.
There is no credit or charge to a + or -. That is why I concur with the Council of Others here that double-entry bookkeeping is an excess for your own financial affairs. From a technical point of view, each transactions in double-entry bookkeeping contains both a credit and a debit note (hence the "double" in the name).
Indeed, a trade is sometimes more than a credit or charge, but always at least one of the two. Every transfer between you and your bank therefore includes at least four direct debit and/or credit transactions, if all parties are taken into account. Otherwise, why not have two columns, one for revenue (like a paycheck) and one for spending (like payment)?
And if you want to divide the revenue and expenditure further, you can do the same. Allow me to endorse mbhunter's proposal to mark your column, "Revenue" and "Expenditure". In order to reply to your query, the incoming funds (e.g. a paycheck) will be added to your account. Your outgoing funds (e.g. an electricity bill) are deducted from your account.
Said you were taking stock of the month's work. You would therefore debit your account with real money. On the income statement side, you would count the shareholders' funds as compensation for the equation: So, if you put $100 into your account, the formula would be affected:
From the bank's point of view, it is correct that they would "credit" your account with $100 and any drain from the bank account would charge your account. Bank "credit" is your account for cash that comes into it. You always have a charge and a credit in double-entry bookkeeping to clear the account.
For example, for $500 that the bank has added to your current account, you would book a charge on cash and a credit on income you earn. Balance sheet equation: Assets = liabilities + equity $500 = $500 Cash is the "asset" side of the equity formula, earnings are part of equity, as is the credit side... to make the equity formula equal.
In most bank directories (where you record entries), your account is shown with a deposit (+) as CREDIT. Disbursements, charges and cash outs are a DEBIT to your bank account. In the case of credits such as credit cards, a credit to your credit account is a deposit or other reduction of the amount owed.
One debit to your account is a DEBIT to your credit account. Search through other tagsged issues or ask your own one.