Re:Double-Entry Bookkeeping as a Directed Graph
by t_mann on Wednesday April 10, 2024 @11:02AM
(#39991477)
That's (somewhat) true for accounts that represent stocks (assets, liabilities, not really for equity though), it's not true for accounts that represent flows (income, expenses). Income is recorded as a credit entry in an income account, eg (the corresponding debit entry would typically be on something like a current account or claims on customers).
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Re:Double-Entry Bookkeeping as a Directed Graph
by rahimnathwani on Wednesday April 10, 2024 @11:30AM
(#39991837)
Consider the positioning of income and expense accounts within the accounting equation. Essentially, they are components of equity. View equity as the company's obligation to its shareholders. A credit entry signifies an increase in what the company owes, whether to creditors or shareholders, while a debit entry reflects an increase in the company's assets.