The Sum of all Debits = the Sum of all Credits (eBook excerpt chapter 2.08)

A free sample from chapter 2 Accounting Fundamentals of our Landlord / Property Management in QuickBooks guide. Section 2.08 The Sum of all Debits = the Sum of all Credits. We hope you’ll become a customer today, or sign up for the free e-course.

 

As we talked about in recent posts about debits and credits, the accounting equation, and T-Accounts, there are basic accounting rules that, once learned, make complicated transactions simple.

The sum of all debits must equal the sum of all credits.

For one transaction (ex a Journal Entry), or for all transactions ever entered. It always is true.

If you have to enter a transaction that this book doesn’t have an example of, draw the T- Accounts and amounts involved. Try to figure out what to do, then talk to your accountant and confirm you have the correct method. The only time you use debits and credits is in Journal Entries, if the sum of all debits does not equal the sum of all credits, there is a mistake.

Keep moving through these sections, even if you do not completely understand them. The examples that follow will get you ready to work with QuickBooks. If you are terribly confused, that’s okay, skip ahead to the next chapter.
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One thought on “The Sum of all Debits = the Sum of all Credits (eBook excerpt chapter 2.08)

  1. Pingback: Managing Investment Property Mortgages in QuickBooks | Property Management in QuickBooks

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