Money owed by you that is due in more than one year, for example: a business loan. Money owed by you that is due in less than a year. Other assets you own, such as loans made to others and goodwill. These may include short-term deposits.Īssets that have a long life, for example: buildings, cars, and computers. Money in the bank, for example: in a checking or savings account.Īssets that, if required, can be turned into cash within a year. For example: when you record a transaction to pay $100 for your utility bill from your checking account, there would be $100 credit (decrease) against your checking account and $100 debit (increase) to the expense account you use to track utility payments.ĪccountEdge uses a standard account number format (X-XXXX) for your accounts list. Since AccountEdge is a double-entry accounting system, every transaction entered will have an equal amount in the form of a debit and a credit. Accounts that normally carry a credit balance are the liability, equity, and income accounts. Accounts that normally carry a debit balance are asset and expense accounts.Ī credit amount increases the balance of accounts with a credit balance and decreases the balance of accounts with a debit balance. CreditĪ debit amount increases the balance of accounts with a debit balance and decreases the balance of accounts with a credit balance. Let’s explore the subject of accounts in AccountEdge to get a better understanding of what you will be setting up.
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