> How do you deal with Cash? For personal finances, when I get cash (say from an ATM) I transfer the amount from asset Bank to asset Cash (i.e. CR Bank/DR Cash

> How do you deal with Cash? For personal finances, when I get cash (say from an ATM) I transfer the amount from asset Bank to asset Cash (i.e. CR Bank/DR Cash). I then record (important) expenses against either Cash or Bank (e.g. CR Cash/DR Groceries). At the end of the period, I check the actual amount of cash vs recorded, and charge the difference against a Misc expense account. This is in the spirit of the standard accounting rules for handling petty cash in an organization. > How do you deal with interest? Consider interest an expense, e.g. CR Bank/DR Interest > Advice? Consider learning the following rules of double-entry accounting:- Asset ... Increase = DR, Decrease = CR Liability ... Increase = CR, Decrease = DR Income ... Increase = CR, Decrease = DR Expense ... Increase = DR, Decrease = CR Equity ... Increase = CR, Decrease = DR Aside: yes an increase in an asset like Bank is a DR. Your actual bank statement is showing what is recorded in your bank's accounting systems, not in yours. If you have a positive balance at your bank it is recorded as a CR on your bank statement because it is a LIABILITY for them, i.e. they owe you the money. Knowing these rules allows you to think how to deal with things. For example, a purchase on your credit card is what? Some example entries: Get Paid: CR Income 100 (see table increase in Income) / DR Bank 100 (see table increase in Asset) Pay Groceries: CR Cash on Hand 20 (see table decrease in Asset) / DR Groceries 20 (see table increase in Expense) Purchase on credit card: DR Airline Tickets 1,250 (see table increase in Expense) / CR Accounts Payable 1,250 (see table increase in Liability) Pay credit card: CR Bank 1,250 (see table decrease in Asset) / DR Accounts Payable 1,250 (see table decrease in Liability) Interest on bank statement: CR Bank 35 (see table decrease in Asset) / DR Interest 35 (see table increase in Expense) edit: tried to deal with HN not allowing any sort of text formatting