Basic Debit/Credit Question

jncr · ‎March 07, 2019

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)

Anonymous · ‎March 07, 2019

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

Rustler · ‎March 12, 2019

@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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