1.An expense paid or incurred, DEBITS the relevant expense account.
•If the expense is paid, the payment CREDITS the bank or cash account it is paid from.
•If the expense is not paid immediately, the debt is a CREDIT to an accounts payable account.
2.A credit note or refund received CREDITS the relevant expense account.
•If the refund is received, the receipt DEBITS the bank or cash account it is deposited to.
•If the refund is due but not yet received, the amount DEBITS an accounts receivable account.
3.A receipt of income CREDITS the relevant income account and DEBITS the bank or cash account it is deposited to.
4.An invoice raised to advise a Debtor of monies due to your Fund CREDITS the relevant income account and DEBITS an accounts receivable account.
5.A member contribution received DEBITS the bank account into which the contribution is deposited and CREDITS the relevant Member Account.
6.A benefit or pension payment to a Member DEBITS the Member Account and CREDITS the bank or cash account from which the payment was made.
You may observe that on your bank statements, deposits are shown as CREDITS and payments and withdrawals are shown as DEBITS.
In your Mclowd™accounts, the reverse applies. Deposits are shown as DEBITS and payments or withdrawals are shown as CREDITS.
To assist you in making commonly required journal entries, a number of specific examples have been provided in this chapter, including examples of processing BAS Returns, entering payments or refunds of BAS, and entering BAS refunds received.
