CNA Accounting - Account Balance: Debit or Credit?

According to Generally Accepted Accounting Procedures, the CNA Ledger & 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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