When I set up an invoice or payment
why in transaction does it show the same amount in both Debit and credit columbs
Hi John,
This is a standard accounting concept called 'double-entry'. For every transaction, debits will equal credits. So for example, if you pay £1500 for rent the transaction will look like this:
1. Credit the Cheque Account £1500 (reducing its balance)
2. Debit the Rent expense account £1500 (increasing its balance).
See this page for more details on double-entry accounting:
http://financialsoft.about.com/od/glossaryindexd/f/Double_Entry.htm
Regards,
