10-25-2010, 07:42 PM
I am a software developer and am developing an accounting system for a training institute. Let me give you a briefing about the institute. The only income the institute can receive is through its courses and services provided.
Ok now im getting confused with the basic DEBITS AND CREDITS. I had a concept before starting this that a debit increases the account and a credit decreases an account. My perception was
Scenario A student comes in to the institute and enrolls into a course. He pays cash 5000. The journal entry would be
Account name Debit Credit
Cash 5000
Course 5000
this is because hte cash is coming in.
However, i spoke to my incharge, the person guiding me throught hte process and he said something totally opposite. He said for the above transaction, the journal entry would be
Account Name Debit Credit
Cash 5000
Course 5000
THe student registering is the debtor and we are the creditor.
I am very confused at this point and do not know how to end this confusion. Can anyone help?!
Ok now im getting confused with the basic DEBITS AND CREDITS. I had a concept before starting this that a debit increases the account and a credit decreases an account. My perception was
Scenario A student comes in to the institute and enrolls into a course. He pays cash 5000. The journal entry would be
Account name Debit Credit
Cash 5000
Course 5000
this is because hte cash is coming in.
However, i spoke to my incharge, the person guiding me throught hte process and he said something totally opposite. He said for the above transaction, the journal entry would be
Account Name Debit Credit
Cash 5000
Course 5000
THe student registering is the debtor and we are the creditor.
I am very confused at this point and do not know how to end this confusion. Can anyone help?!
