T077S & T077Z

Acct Groups for G/L Accounts

Balance Sheet Accounts
Debit (left)	Credit (right)
Assets	Liabilities
	Fund Accounts
Assets = Liabilities + Equity

Income Accounts (P&L)
Debit (left)	Credit (right)
Expenses	Revenue
Expenses reduce Equity	Revenues increase Equity

Where are the contra accounts? Accumulated depreciation is a contra-asset account. Estimated uncollectible receivables is a contra-asset account. There has been a suggestion that discounts should be contra-revenue accounts.

I found 4 G/L accounts with "Depr" in their description. Three of them are balance sheet accounts and one of them is an expense account:

Dave found an FI posted depreciation transaction (doc type AF = Depr. postings) for me (170040):

Posting Key 75 is a credit to assets (so what does 501 represent? Planned depreciation - It is asset transaction type):

Posting Key 40 is a debit to G/L (the expense depreciation)

This transaction increases accumulated depreciation by posting a credit to this contra-asset account and increases expenses by posting a debit to the expense account.

External asset acquisition:

Retirement from new acquisition without revenue:

Retirement without revenue:

Planned depreciation:

Last Updated on 02/27/2001
By Carolyn Fuller
Email: fuller@mit.edu