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I'm glad you guys understand it in South Africa, and if I ever wanna open an accounting start-up, I'll be sure to source talent from there, but you lost me: >
by wodenokoto 6y ago
I'm glad you guys understand it in South Africa, and if I ever wanna open an accounting start-up, I'll be sure to source talent from there, but you lost me:
> Then debit Food Expenses (decrease equity) and credit Cash (decrease assets)
Why are you decreasing the number in two columns?
I don't really need to know personally, but I hope this gives you an idea of what kind of things confuses people.
I don't think the basis of double accounting in the sense that "every thing in and out must end up equalling zero" is super sophisticated concept to grasp, at least superficially.
But once it is applied to situations where things intuitively are just going out of your budget (like buying and eating something: you're left with no money and no banana) and on top of that use counter-intuitive words, I hope you can appreciate that people get confused.
- dhagz 6y ago> Why are you decreasing the number in two columns? It's not two columns, it's both sides of the equation: Assets = Equity + Liabilities So if you're decreasing equity, but not gaining any liability, then the only option is to decrease assets to be balanced.