NEGATIVE BALANCE

essamessam Member Posts: 1

Hello, I am having difficulty in understanding waveapps ending balance. All the transaction I entered through Journal transaction as I just started the business. The amount it is showing 19,200 is correct but it is negative. if this figure is positive then all will be good. can anybody explain how to get this figure in positive.

Comments

  • SamdSamd Administrator Posts: 498 admin

    Hey @essam - I'm thinking this has to do with double-entry accounting, and what type of transactions increase or decrease an account type. Somewhat counter-intuitively, asset and expense accounts are increased with debits and decreased with credits. So in reference to your first two transactions equaling PKR307,000, I think you should just be able to reverse the direction of the transactions, depending on what you are trying to show.

    That being said, if you are trying to create starting balances for these accounts, I'd actually recommend not using Journal Transactions, but rather heading to Accounting > Transactions, and instead creating income or expense transactions (depending on whether the balance is positive or negative). You can sort these transactions into the appropriate accounts, but you'd also want to categorize the transaction type as owner investment or drawing. This will effectively tag it as a starting value rather than new income/expense.

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