The truth is very powerful and overcomes lies, if you know how to expose it.

Bookkeeping entries have two columns of numbers, one on the left and one on the right. These tell us what the bank owns and what money the bank owes to customers. The left hand column is the asset column. The asset column records what the bank owns. Cash and promissory notes are assets and recorded in this left hand column. ow do you know if something is an asset! "t is easy to tell. "f you can sell it, it is an asset. #ssets have value. The right$hand column, generally speaking, is the liability and capital column. The liability means you owe money to someone. %ou cannot sell a liability. %ou cannot sell someone what you owe them. &ome people call the left column a debit and the right column a credit. 'ust remember that it is a way to determine how much the bank owes you. The bank li$ability is merely a scorecard to record how much legal tender the bank owes each customer. Think of the banks as one big bank working in cooperation, acting in unison. The following examples will show you the bank(s bookkeeping entries for deposits and the alleged loans) *xample +,) "f you deposit -.,/// cash in the bank, these are the bank bookkeeping entries) Cash -.,/// 0ebit 1asset2 0emand 0eposit #ccount 100#2 -.,/// Credit 1liability2 This entry shows that the bank deposited the money into a checking account. The cash is recorded as a bank asset, showing that the bank owns the money. The bank creates a bank liability of -.,///, showing the bank owes you -.,///. This -.,/// liability on the bank(s books is a scorecard showing how much the bank owes you. "t means you can get your -.,/// cash back or write a check for -.,///. The legal tender is recorded as a bank asset and owing money is a bank liability. The key thing to remember is, when you deposit -.,///, the bank assets and the bank liabilities both increase by -.,///.

"f money is withdrawn, the bank assets and liabilities both decrease by the amount of the funds withdrawn. "f the bank records receiving a loan from you in the amount of -.,///, the bank records the cash as a bank asset and records a new bank liability of -.,///. That is exactly what the bank did when you deposited the cash. 3hen the bank grants you a loan, replace the word cash with the word promissory note. "f the bank grants a -.,/// loan, you sign the -.,/// promissory note and the bank records the promissory note as a loan from you to the bank when they record the promissory note as a bank asset and create a new bank liability. The -.,/// liability means they owe you -.,/// of legal tender. "f they owe you for the -.,/// cash, they also owe you for the -.,/// promissory note because they altered the agreement and you are the lender. # 00#, or 0emand 0eposit account, is the same thing as a checking account or transaction account. &ee) http)44www.scribd.com4doc45/6789::/4#$;ortgage$is$<ot$a$Contract 0=>B?* *<T@% B==AA**B"<C defined) #n accounting techniDue, which records each transaction as both a credit and a debit. Credit entries represent the sources of financing, and the debit entries represent the uses of that financing. &ince each credit has one or more corresponding debits 1and vice versa2, the system of double entry bookkeeping always leads to a set of balanced ledger credit and debit accounts. &elected entries from these ledger balances are then used to prepare the income statement. #&&*T& defined) ,. 1#ccounting E Book$keeping2 accounting the property and claims against debtors that a business enterprise may apply to discharge its liabilities. #ssets may be fixed, current, liDuid, or intangible and are shown balanced against liabilities. Compare liabilities 5. 1?aw2 law the property available to an executor or administrator for settlement of the debts and payment of legacies of the estate of a deceased or insolvent person 6. 1Banking E Finance2 any property owned by a person or firm GC,: 1in the sense) enough to discharge one(s liabilities2) via #nglo$French from =ld French asez enough, from Hulgar ?atin ad satis 1unattested2, from ?atin ad up to I satis enoughJ Collins *nglish 0ictionary K Complete and >nabridged L arperCollins Bublishers ,88,, ,889, ,887, 5///, 5//6 ?"#B"?"T"*& defined) ,. 1#ccounting E Book$keeping2 accounting business obligations incurred but not discharged and entered as claims on the assets shown on the balance sheet. Compare assets, Collins *nglish 0ictionary K Complete and >nabridged L arperCollins Bublishers ,88,, ,889, ,887, 5///, 5//6