GJE Wierdness

Posted by Energy Management Solutions, I on October 18, 2008, 7:31 pm

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So hey! I don't know if this is the right group upon which to post
this question, so please let me know if it would be more appropriately
addressed to a different group. Here goes:
In my chart of accounts, I have a bank account, the balance for which
I want to pay via a GJE. The checks were entered into the account,
and I was at the register. I clicked on "Company", selected "Make
General Journal Entries", and made a GJE with that bank account as the
debit "Account" (in the amount of the account's balance) and
"Stockholder Loan" as the credit "Account" (in the same amount). By
my estimation and prior experience (unless I'm hallucinating?) this
should zero out the balance. However, it doesn't show up on the
register. Shouldn't it?

Thanks for any feedback you can give to shed some light on this
confounding problem! Maybe I am supposed to go about things
differently than I have?

Posted by Laura on October 18, 2008, 8:19 pm

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> So hey! I don't know if this is the right group upon which to post

> this question, so please let me know if it would be more appropriately

> addressed to a different group. Here goes:

> In my chart of accounts, I have a bank account, the balance for which

> I want to pay via a GJE. The checks were entered into the account,

> and I was at the register. I clicked on "Company", selected "Make

> General Journal Entries", and made a GJE with that bank account as the

> debit "Account" (in the amount of the account's balance) and

> "Stockholder Loan" as the credit "Account" (in the same amount). By

> my estimation and prior experience (unless I'm hallucinating?) this

> should zero out the balance. However, it doesn't show up on the

> register. Shouldn't it?

> Thanks for any feedback you can give to shed some light on this

> confounding problem! Maybe I am supposed to go about things

> differently than I have?

You have the GJE backwards. When you spend money in your bank account you
are crediting the account. When you deposit money into that account you are
debiting the account. Switch the debits and credits in your GJE and you
should see the balance go to zero.