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Let's try an example that applies double-entry accounting to using GnuCash. We will record the deposit of a $500 paycheck.
To enter a paycheck deposit, you first need to create two accounts. The first account is a checking account. Click the New button in the main window toolbar to create a new account, then enter the following account details in the dialog box that appears:
Account Name: "Checking"
Account Type: Highlight "Bank"
Parent Account: Highlight "New top level account"
Click "OK" to complete setup, then create a second income account. Click the New button again, and enter these details in the dialog box:
Account Name: "Salary"
Account Type: Highlight "Income"
Parent Account: Highlight "New top level account"
To create a double-entry transaction for the paycheck deposit:
Open the Checking account register you just created by double-clicking on the account name in the main window.
Tab to the Description field and enter "Paycheck Deposit."
Tab to the Transfer field and select the Salary account from the pull-down menu.
Tab to the Deposit column and enter "500," then hit "Enter" to record the transaction. Now your Checking account shows a debit entry of 500.
Highlight the transaction again and click the "Jump" toolbar button to see the transaction's effect on the Salary account. Notice that in the Salary account, you now have a matching credit entry of 500 that GnuCash entered automatically for you.
What if you want to edit this transaction to increase the paycheck deposit to $600? To change a double-entry transaction, simply select the transaction in any register in which it appears, then make your changes and record the transaction. In this case, you can either edit the transaction from the Checking account register or the Salary account register. Any changes made will be automatically reflected in both accounts and all windows displaying the transaction.
To change the transfer account, simply select a new account from the pull-down menu. When you record the transaction, this account change will be reflected in all affected accounts. Similarly, when a double-entry transaction is deleted, entries will be deleted from all affected accounts, and balances will automatically be recalculated for those accounts.
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