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    em.danielle1144's Avatar
    em.danielle1144 Posts: 12, Reputation: 1
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    #1

    Oct 15, 2011, 04:50 PM
    How would the general ledger entry look for received cash from clients on account
    In the amount of 12100. I have about 5 questions like that and the beginning balance for accounts payable (in the general ledger) is 7500 and with the other transactions it was looking okay but it this one is a credit then my account will be negative.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 15, 2011, 05:08 PM
    Accounts Payable will have a normal credit balance. When you purchase something on account you will credit the account balance, which will increase the account balance, while a payment on account will be a debit to your balance, which will decrease your account balance.

    Accounts Receivable will have a normal debit balance, which means that when a customer purchases something from you on account you will debit your account balance, which increases your account balance. When a customer makes a payment on his or her account this you credit the account, which will decrease your account balance.
    em.danielle1144's Avatar
    em.danielle1144 Posts: 12, Reputation: 1
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    #3

    Oct 15, 2011, 05:28 PM
    So I can have a negative amount in my general ledger?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Oct 15, 2011, 09:21 PM
    No, you will only have debits and credits with either a debit balance or a credit balance.
    em.danielle1144's Avatar
    em.danielle1144 Posts: 12, Reputation: 1
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    #5

    Oct 16, 2011, 03:57 PM
    So what if I added and subtracted and got a negative number that doesn't mean anything?
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