CMS Fund Accounting - Debit or Credit?

According to Generally Accepted Accounting Procedures, the CMS Finance and Payables system supports the entry of debits and credits (pluses and minuses) to effect account balances.  The effect of a debit or credit on a specific account type is shown in the table below:


 Account Type Typical Account Typical Balance   DEBIT Effect  CREDIT Effect 
 Asset  Checking/Savings  Debit  + Increase  - Decrease
 Liability  Mortgage  Credit   - Decrease  + Increase
 Net Asset  Equity  Credit   - Decrease  + Increase
 Income  Offerings  Credit   - Decrease  + Increase
 Expense         Telephone Charges  Debit   + Increase  - Decrease
 Dedicated  Memorial Fund  Credit   - Decrease  + Increase

Some common Journal Entry transactions are:


· Bank Account charges.
Account         Debit         Credit         Comments
Checking                          3.00         Bank Charges
Office Expense  3.00                         Bank Charges

· Interest on a savings account.
Account         Debit         Credit         Comments
Savings         125.00                         Interest - July
Interest Income              125.00         Interest - July

· Telephone transfer of money from savings to checking.
Account         Debit         Credit         Comments
Savings                          900.00        Tel. Transfer 9/8
Checking         900.00                        Tel. Transfer 9/8

· Record employer payroll withholding liability.
Account         Debit         Credit         Comments
Payroll Withhold                75.00        Employer FICA
Employer FICA  75.00                        June

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