Note: To learn more about the Transfers page, please view the Using the Transfers page article.
An adjustment allows you full flexibility in setting up the entry. You can specify two or more accounts, and indicate the debit and credit values specifically for each. Setting up debits and credits can be a little confusing so if you are not sure please read the following article to learn more about them:
Entering Adjustments in Kashoo
Click on Journal Entries and select Enter Adjustment
All you need to do is make sure debits = credits. You can debit and credit as many accounts as you like.
Example 1 - Debiting and crediting two accounts
Let's say that you needed to depreciate some assets. To depreciate items found in the Furniture & Equipment account by $500 for the 2014 fiscal year you would enter:
- Date: 2014-12-31
- Account: Furniture & Equipment, Credit: 500
- Account: Depreciation Expense, Debit: 500
What this does is take decrease the company's assets by $500 (by taking $500 out from the Furniture & Equipment account) and increase the company's expenses (by adding $500 to the Depreciation Expense).
The important part is that debits = credits.
Example 2 - Debiting and crediting three accounts
Let's say you wanted to do a journal entry for a loan payment on December 1, 2014, which includes taking from the bank ($250) to pay for the principal ($200) and interest ($50) on a loan. The following would be entered:
- Date: 2014-12-01
- Account: Bank Account, Credit: 250
- Account: Business Loan, Debit: 200
- Account: Bank Charges & Interest Expense, Debit: 50
What this transaction is doing is decreasing the money in the bank by $250, reducing the loan owed by $200, and increasing the interest expense by $50.
Again, debits = credits.
To add an attachment, just click on any existing transaction and you can use the Attachment Upload section to upload files. You can upload multiple files and all file types are supported.
To view attachments click on the File icon.
Click on the boxes to navigate between multiple attachments. If you would like to download the attachment, click on the Download link.