38 thoughts on “General Ledger Accounting

  1. You post first in the asset that you purchased (this will be a debit)

    And then in an “Accounts Payable” account (this will be a credit)

  2. You would debit the item (asset) that you purchased for the amount of the purchase . You would then add a credit for the amount of the purchase to your Accounts Payable general ledger (liability). Example: Bought $500 in supplies on credit; debit your “Supplies” account $500 and credit your “Accounts Payable” account $500) Assets are increased as a debit and Liabilities are increased as a credit. Hope this helps!

  3. I’m supposed to figure out the debit and credit out of 2 of the following accounts?

    An Asset acct.
    Cost of goods sold acct
    expense acct

    I’m confused.

    Total Sales of $52,000 received in cash.

  4. Well, there are a lot of unanswered questions, and I am just learning this myself, so I won’t attempt to answer something I don’t know. But posting cash in the bank is fairly easy, depending on where the cash came from. You would post a debit entry to the cash account, or whichever account corresponds to where you actually have the money. I make that qualification because I personally use several different cash accounts depending on which bank account the money is in, but if you have all your cash in one place, then it’s simply a debit to cash. The corresponding credit will depend on where you got the cash. If you borrowed in from the bank, you would have a liability credit for the loan. If someone is investing the cash in the entity, it would go under contributed capital. If the money was generated through sales or earnings, it could be a credit to revenue. Fun stuff.

  5. Just to add a few more, if you had the cash at the opening of the book, it could be a credit to opening cash. I started my book to calculate my net worth, so I carried a lot of balances at the start of the book. I just used accounts for opening cash, opening assets, etc.

  6. When setting up a General Ledger and having to set up a “Leave without Pay Account” which will not accumulate cost – where would this be set up? It is currently set up as an asset, but not sure if this was set up correctly.

  7. To Jen
    Yes for every entry you make you have to make sure there is a credit and a debit so that the ledger is balanced.

  8. To Patty
    You credit cash with the amount paid, debit medical expense account with the correct expense incurred then credit prepaid account with the overpaid amount:

    Example: Amount paid $500, expense incurred 300
    Cr cash 500
    Dr Medical expense 300 subsequently debited in the income statement
    Dr prepayment 200 Transferred to the balance sheet under current assets

  9. OK…. in your general ledger you start off with, Capital (OE) then vehicles (A),Equipment(A) then we get to our Bank(A) now what i don’t understand is just say now you working on the month March then you write Mar 01 balance b/d 8700…ok….then you write underneath that 31 Total reciepts CRJ 68700 then you add the two which will come to 77 400…ok… now thats all in the Dr side(debt)..okay now still in the debt side ther is another month and balance b/d 13 050
    now how do you get that balance???

  10. clarify for me the difference between the following:
    -general ledger and ledger
    -general journal and journal
    -purchase order and invoice
    -pro-format invoice and invoice.


  11. Ok, I came here a few times because it seemed i could always find my answers here. I loved that you mentioned that when merchandise is not returned to the purchases journal on that page and even still continued to say it goes in the general jounral and even had a link! However on clicking that link theres nothing about what to do with returned merchandise, not a single word. Thanks for your amazing work here but please do fix!

  12. Hi, my question is how do I enter a credit to a purchase made with a credit card purchase and only part of that is returned. How do I enter it in the general journal? Do I enter the full amount as a debit and then enter only the credited amount as a credit? need help please.thanks

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  18. I happened to find this while looking for help in if I need to post a double entry in the General Ledger. It’s been very helpful, and might be what I needed to complete my problem. Thanks again!!

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