I have created an asset account on B/S as follows:
I received cash into the account and it shows as a negative figure, can someone help me to understand what is happening?
The accounting entry of a receipt is as follows:
| Account | Debit | Credit |
|---|---|---|
| Bank or cash account | X | |
| Line account (+) | Y | |
| Line account (-) | Z |
So in your case, the receipt resulted in a credit of 27,635 as it should and in the context of assets that is negative.
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