How TrueSum keeps the books
Every transaction has two sides, and that is why your totals agree.
You do not need to know accounting to use TrueSum. You need one idea, and this page explains it. Every transaction has two sides.
Two sides
Money does not appear or disappear. It moves from one account to another. A transaction records both ends, which are Account 1 and Account 2 in the form. Pay $79 for software from Business Chequing, and two things happen:
| Account | Side | Amount | What its list calls it |
|---|---|---|---|
| Business Chequing | Credit | $79.00 | Withdrawal / Money Out |
| Software Subscriptions | Debit | $79.00 | Purchase |
A debit and a credit are the two sides. Which one makes an account go up depends on the kind of account, so TrueSum names the columns for the kind. A bank account says Deposit / Money In, and a customer says Sale and Payment. Turn off Use Friendly Names in App Settings to see Debit and Credit everywhere.
Direction in the form chooses the side of Account 1. TrueSum puts Account 2 on the other side, with the same amount, so you cannot enter one side alone.
Why the totals agree
What the business owns (assets) is what it owes (liabilities) plus what is left for the owner (equity). Every transaction changes two sides by the same amount. That is what the Balance Sheet and the Trial Balance show.
Where the record is
Every change is kept. What Happened lists what TrueSum did, and When two devices change the same thing explains the changes a sync did not keep.