![QuickBooks Help](https://uxfabric.intuitcdn.net/web-app/sh-exp-sbg-app-experience/sbg_ohh_icon.19f2ae89.png)
How accounts are affected by debits and credits in QuickBooks Online
by Intuit• Updated 1 month ago
QuickBooks Online uses double-entry accounting, which means each transaction or event changes two or more accounts in the ledger. Each of these changes involves a debit and a credit applied to one or more accounts.
For most transactions, the entries of debits and credits are handled by QuickBooks Online. However, understanding the ways debits and credits work will help you understand the basic functions behind transactions and what to expect when entering them.
Debits and credits in QuickBooks Online
This table shows how account balances are affected by debits and credits in QuickBooks Online. It can be useful if you have to create an adjusting entry or journal entry.
Account Type | Debit | Credit |
Bank/Cash in Hand | + | - |
Accounts Receivable (Debtors, Trade and Other Debtors, Trade and Other Receivables) | + | - |
Other Current Asset (Inventory, Undeposited Funds) | + | - |
Fixed Asset (Property, Equipment) | + | - |
Other Asset (Long-term Assets, Non-current Assets) | + | - |
Accounts Payable (Creditors, Trade and Other Creditors, Trade and Other Payables) | - | + |
Credit Card | - | + |
Other Current Liability (Current Liability) | - | + |
Long Term Liability (Long Term Creditors, Non-current Liabilities) | - | + |
Equity | - | + |
Income (Revenue) | - | + |
Other Income (Other Revenue) | - | + |
Cost of Goods Sold (COGS, Cost of Sales) | + | - |
Expense | + | - |
Other Expense | + | - |
You can learn more about how accounts get debited and credited by customizing the General Ledger report to show debit and credit amounts.
Sign in now for personalized help
See articles customized for your product and join our large community of QuickBooks users.
More like this
- Connect bank and credit card accounts to QuickBooks Onlineby QuickBooks•8017•Updated 7 days ago
- Email receipts and bills to QuickBooks Onlineby QuickBooks•5789•Updated 1 week ago
- Handle a customer credit or overpayment in QuickBooks Onlineby QuickBooks•994•Updated 1 month ago
- Void or refund customer payments in QuickBooks Onlineby QuickBooks•3116•Updated 2 weeks ago