Hi Kevn,

On Thu, 07 May 2015 12:52:15 -0700,
Kev Lau <[email protected]> wrote:
> 
> Hi
> This is what I think is correct. Read the ledger manual and some pretty 
> good explaining there.
> 
> Assets will be in negative . Will keep reading to figure things out.

No, this is not correct.

Accounts seem to dislike negative numbers, so they deal with
debits/credits to work around them. We are OK with them so we don’t.

Typically in ledger-land your chart of accounts will be:

Assets: positive
Liabilities: negative
Income: negative
Expenses: positive
Equity: negative

Note how this corresponds with:

  http://en.wikipedia.org/wiki/Debits_and_credits#The_five_accounting_elements

Here is how money is *typically* moved (for a personal user, not a
business):

-Equity   +Assets      (starting balance)
+Expenses -Assets      (spending your money)
+Expenses -Liabilities (spending on credit)
-Assets   +Liabilities (paying your bills)
-Income   +Assets      (getting paid)

Hope that helps.

best, Erik
--
Sent from my free software system <http://fsf.org/>.

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