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jncr
Level 1
posted
‎March 07, 2019 07:43 AM
last updated ‎March 07, 2019 7:43 AM

Basic Debit/Credit Question

I am new to using QuickBooks. I paid $350 cash to my nephew to help with demo on a project. Would I create a journal entry to credit subcontract expense then a debit to accounts payable? I have little to no experience in accounting. I am giving it a try then handing it off to my accountant in a couple months. (I want to try to do something with it, though)

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2 Comments
Anonymous
Not applicable
‎March 07, 2019 08:35 AM

Basic Debit/Credit Question

please forget most of what you learned in high school accounting.

In modern systems Debit/Credit entries (called journal entries) are used only as a last resort.

 

If you made a cash/check transaction then make a cash entry in QB.  What account to use inst clear - not sure if this was a loan or an expense.

Also note that  QB is for business accounting - its not a personal expense manager 

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Rustler
Level 15
‎March 12, 2019 03:19 AM

Basic Debit/Credit Question

@jncr 

 

Along with what Mike said about not using journal entries, but to correct the debits and credits you referred to

 

expenses, what you pay for, are debits

the payment, check cash cc, is a credit

Accounts payable is used when you get a bill from a vendor and will not pay it until some later date.

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