Hi, I am just getting started with ledger but am confused by how ledger treats income.
As I understand it, double entry accounting all derives from the equation: Assets/Property = Claims against Assets/Property Expanded several times: Assets = Liabilities + Equity (the two types of claim against assets) Changes in equity are the net effect of its sub-categories: investment + income - expenses - draws Assets = Liabilities + Starting Equity + Income + Investment - Expenses - Draws (the expanded accountancy equation) Anything that tilts that equation clockwise is a credit and anything that tilts it anti-clockwise is a debit. Hence every credit must have a debit. And so finally: Ledger handles income by debiting the cash asset account, and also debiting an income account. This just doesn't work in my head -- how can the account be a true income account? I need help reconciling the idea of moving currencies on which ledger is based and the accountancy equation. Hopefully I have just made a dumb error and it's a quick fix. T -- --- You received this message because you are subscribed to the Google Groups "Ledger" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
