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Default adding amounts if criterias are met

I have a sheet #2 where I would like to automaticlly update totals from
another sheet. The values are being input on sheet #1. Sheet #2 should total
the amounts from sheet#1 based on a category. So the formula must be smart
enough to search sheet#1 for the category (there may be multiple of the same
category) and then take those values and add or subtract then from the total
on sheet#2. Thus giving me the current value for all activity on sheet#1 for
that category.
 
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