Nope, in these examples the +Asset on the left means you received say cash. The right side shows various ways to balance that out based on the accounting equation
I guess technically this would be selling a service instead of a good.
I was going through the 4 combinations of balanced two-line entries, based on the accounting equation, to show how it helps when thinking through how to record something.
If you get into more than two lines, then yup selling a good would be
+Asset -Asset +Income
or if you include sales tax and son shipping costs:
+Asset -Asset +Liability +Income +Expense
Using an updated accounting equation and negative numbers is a lot more intuitive than credits and debits. In this larger example it tells you:
It tells you what types of accounts balance, with a syntax that matches your intuitions: more asset = good, less asset = bad, more expense = bad, less expense = good.
Nope, in these examples the +Asset on the left means you received say cash. The right side shows various ways to balance that out based on the accounting equation
I did an explanation with numbers here: https://news.ycombinator.com/item?id=40021506
> in these examples the +Asset on the left means you received say cash.
Ah. So... where is the value of the lemonade before you sold it? Wasn't that an asset before you sold it?
I guess technically this would be selling a service instead of a good.
I was going through the 4 combinations of balanced two-line entries, based on the accounting equation, to show how it helps when thinking through how to record something.
If you get into more than two lines, then yup selling a good would be
or if you include sales tax and son shipping costs:
Using an updated accounting equation and negative numbers is a lot more intuitive than credits and debits. In this larger example it tells you:
It tells you what types of accounts balance, with a syntax that matches your intuitions: more asset = good, less asset = bad, more expense = bad, less expense = good.
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