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Hello,
I’m new to accounting (just begun studying) and am trying to put in all 2013 transactions for my small business into an accounting software (Wave Accounting). The software is based on double-entry book-keeping.
I can add all the expenses into the journal – that’s not a problem.
My question however is to do with invoices that I issued and rayments I’ve received against those invoices.
I can record money coming in against an invoice as Cash going up. But on the other hand, what account would go down?Thanks in anticipation.
As a simple example, when you invoice somebody or a company for a sale, the double entry is:
Dr: Debtor account
Cr: Sales AccountWhen the invoice is paid:
Dr Bank/cash
Cr Debtor accountSo, as you can see, the Debtor account goes down to reflect the fact the person/company no longer owes the money because they have paid the invoice.
We would suggest, that you download F3 course notes and listen to lectures
https://opentuition.com/acca/f3/acca-f3-lectures/everything should be clearer then 🙂
good luck
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