On Tue, Jun 8, 2010 at 10:08 PM, ario <[email protected]> wrote: > Good day, > > I've got just newly involved in both accounting and ledgersmb, so I'm > afraid this won't be my last posting to this list :) > > For a farm that's growing rice among other products I'm trying to set up > an accounting system and I chose for LedgerSMB. > > So here's the deal: > For the preparation of seedlings, somebody is plowing a seedbed where > the seeds will be sown for later transplantation in the rice field. > For this I created the account: > > 1. 5220 cogs/madboat seedbed > > As I understand from my newly acquired knowledge about accounting, > things that add to assets are 'debited' and items/money that go out of > the system are 'credited' in the books.
That's correct. > So I was considering entering the following in the general ledger: > > Department: rice field 1 > Project: first cropping 2010 > account debit credit > 5220 400 This is an expense, right? It should be a debit. > 2100 400 This is a liability, right? Credit is right. > but I'm afraid this doesn't make sense, because whenever I push the > 'update' button, it adds a new line with account nr. 1010 in the > transaction window. > > I was thinking along the line: plowing (5220) costs money (400) so > that's put on the credit side, accounts payable (2100) will increase the > liabilities (400) so that's also put on the credit side. However, I > don't think an entry like this will balance. Right. Because neither of these are assets. Your liability side should go on the credit, and the balancing expense side goes in as a debit. Best Wishes, Chris Travers ------------------------------------------------------------------------------ ThinkGeek and WIRED's GeekDad team up for the Ultimate GeekDad Father's Day Giveaway. ONE MASSIVE PRIZE to the lucky parental unit. See the prize list and enter to win: http://p.sf.net/sfu/thinkgeek-promo _______________________________________________ Ledger-smb-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
