That depends. To you, your bank account is an asset. Debits increase assets and credits reduce them, so a deposit is a debit and a withdrawal is a credit -- to you.
To the bank, your account is a liability: money that they are holding but do not own and must one day repay. Debits decrease liabilities and credits increase them, so a withdrawal is a debit and a deposit is a credit -- to the bank. It's similar with credit-card accounts, by the way, except that the situation is reversed: the account balance is a liability to you and an asset to the bank. So a "credit", for instance when you make a payment or return an item, is indeed a credit to the bank (because it reduces an asset) but it's a debit to you (because it reduces a liability). A "charge" or "debit" increases your account balance and therefore is a debit to the bank but a credit to you. Debits increase Assets and Expenses; credits reduce them. Debits reduce liabilities, equity,and income; credits increase them. I'm pretty sure there's a longer explanation in the Tutorial and Concepts manual, but that's the short version. Stan Brown Tehachapi, CA, USA https://BrownMath.com On 2023-02-05 12:50, King Mak wrote: > Good day, > > How does one change the word Debit and Credit to Withdrawal and Deposit? > > Thank you > _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
