Debit or Credit?
According to generally accepted accounting procedures, the ParishSOFT Ledger & Payables software supports the entry of debits and credits (pluses and minuses) to affect 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
Related Articles
Updated