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Ledger Accounts

Hi


Does anyone know Income is represented as a credit entry in a ledger account?

Comments

  • CullenCullen Experienced Mentor Registered Posts: 592
    Yes that is correct. If you are wondering why, I can't really explain it other than to say that logically the funds received are a debit to the bank and therefore income must be a credit.
  • CJCCJC Font Of All Knowledge Registered Posts: 1,657
    I've been thinking about this too -when you have revenue from sales it's clear that this should be a credit as it represents a decrease in stocks but when it's from investment activity then I'm stumped for a reason other than, as Cullen said, if you got a debit you must have a credit. There has to be a better rationale but I can't see it.

    Where are the forum's big accounting brains when you need 'em?
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