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a small question... please - makky - 10-23-2009

Hello colleagues,

I have a small question which i will appreciate if you can answer it

I'm an accountant in a company in KSA, and i noticed that my colleague is putting the CR. side of the accounting entry before the DR. side when he is booking an AP, and vice-verca when it comes to AR, I asked him why he is doing this, he argued that it's not the STANDARD to put the DR. before the CR. and he was basing on the fact that some computerized accounting systems allows to do this, and based on the fact that writing the amount due to a supplier first and then the it's allocations among costs/assets is much eisier and user-friendly!

I responded that IT IS THE NORM in accounting - Worldwide - that DR. is always written before CR. no matter if you are dealing with APs or ARs or any other transactions.

I would like to hear you judgment from both the academic & professional standpoints.

- danishayub_76 - 10-23-2009

Dear !

Follow the Newton's Law of Action Every action has a reaction.

Infact, it is customary to put Dr. first in journal entries. however, there are computerized accounting softwares that do not follow this custom.

For example if in computerized accounting system you open a bank payment voucher It means you will definitely credit the bank account so it only require the debit amount. Similarly when Bank receipt voucher is opened in a computerized accounting software, it requires only credit amount and head of account.

I hope it will suffice.