Here is how debits and credits work in BoosterHub Accounting.

How Debits and Credits Affect Different Account Types

Here are some common BoosterHub transactions you will encounter:

1. Move Cash In to Cash Box

Transaction: Moving money from your bank account to your cash box

• Debit: Cash Box (Asset account increases)
• Credit: Bank Account (Asset account decreases)

2. Pay Sales Tax

Transaction: Paying sales tax that you owe

• Debit: Sales Tax Payable (Liability account decreases)
• Credit: Bank Account (Asset account decreases)

3. Booster Credits

Transaction: Applying discounts to reduce income

• Note: Booster Credits function as discounts and automatically reduce income. No formal journal entry is created for these transactions.

4. Cash Tally Sheet

Transaction: Moving funds from cash box to undeposited cash

• Debit: Undeposited Cash (Asset account increases)
• Credit: Cash Box (Asset account decreases)

Additional Entry for Over/Under Amounts: When there's a difference between expected and actual cash during deposit:

• Shortage: Debit Over/Under Expense Account (Expense increases)
• Overage: Credit Over/Under Expense Account (Expense decreases)

5. Invoice Creation

Transaction: Creating an invoice for services or products

• Debit: Accounts Receivable (Asset account increases)
• Credit: Income/Revenue (Income account increases)

6. Automatic Sales Entries

Transaction: Store, fundraising, and merchandise sales

• Note: All sales entries are posted automatically by BoosterHub. These typically involve:
  • Debiting Cash or Accounts Receivable
  • Crediting appropriate Income accounts

Key Points to Remember

• Every transaction must balance: Total debits must equal total credits
• Assets and Expenses increase with debits
• Liabilities, Equity, and Income increase with credits
• BoosterHub automates most accounting entries for standard transactions
• Manual entries are typically needed only for cash movements, tax payments, and adjustments

For additional information about BoosterHub Accounting features and detailed explanations, visit our comprehensive FAQ section.

If you have questions about specific transactions or need assistance with your accounting setup, please contact BoosterHub Support.

This article covers the most common accounting transactions in BoosterHub. For complex scenarios or custom entries, consult with your organization's treasurer or accounting professional.