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In accounting why the reverse principle is not possible - debit the the giver and credit the receiver?
The best way to explain this is by example:
Wells Fargo Bank has your bank account. Your account is a liability for them since this is not truly their money and it is obligated to you the account holder......so when they increase your account, they post a credit to it. Because to increase their liabilities they have to credit it......and when you use your debit card and decrease your account then wells fargo debits your account to remove the money.
For you as the account holder your checking account is your asset......so if you were tracking your accounting in a program.....and you wanted to show where you deposited money into your account in your system then you would post a debit to increase your cash account.
What else can I help you with?
What transactions might require reverse entries?
What transactions in accounting might not require reversing entries
How do you record a credit when no money is received?
Yes, that is possible. For instance a credit could be given to "reverse" a payment made in error.
What is the function of reversing entries in accounting cycle?
A reversing entry removes an estimate when the actual amounts are known. For example, if you accrued your telephone bill at the end of the month, you would reverse the accrual in the following month when you receive and post the actual telephone bill.
When preparing correcting entries the erroneous entry must be?
When preparing correcting entries, the erroneous entry must be identified and clearly understood to ensure the correct amounts and accounts are used in the correction. The correcting entry should reverse the original mistake and then record the accurate transaction. It’s essential to document the reason for the correction to maintain transparency and clarity in the accounting records. Additionally, both the erroneous and correcting entries should be reflected in the same accounting period to ensure accurate financial reporting.
How do you get MasterCard to reverse charges and make them stick?
How do you get MasterCard to reverse charges and make them stick?
Is it possible to reverse engineer copper?
It is not possible to reverse engineer copper. Copper is a basic element.
Is it possible to reverse human aging?
no that is not possible
Is it possible to reverse Zelle payments?
No, it is generally not possible to reverse Zelle payments once they have been sent.
Is it possible to reverse Zelle transactions?
No, it is generally not possible to reverse Zelle transactions once they have been completed.
Is it possible to reverse Zelle transfers?
No, it is generally not possible to reverse Zelle transfers once they have been completed.
Is it possible to reverse a Zelle payment?
No, it is generally not possible to reverse a Zelle payment once it has been sent.
Is it possible to reverse a Zelle transaction?
No, it is generally not possible to reverse a Zelle transaction once it has been completed.
Is it possible to reverse wire transfers?
No, it is generally not possible to reverse wire transfers once they have been completed.
In the 1986 which wide receiver caused a reverse in the Iron Bowl which won the game?
Lawyer Tillman
Is reverse osmosis possible in air?
Reverse Osmosis is not possible in air being specifically a water purification technology.
Is it possible for someone to reverse a Zelle payment?
No, it is generally not possible to reverse a Zelle payment once it has been sent.
Why do you need to reverse a journal entry?
According to my understanding and my study in accounting, the reversal of journal entry merely is for the opening balances for a new year of accounting period
