A negative asset is effectively a liability. It is part of a concept
called 'contra' accounts. You can have contra-liability accounts too,
that are effectively assets.
Asset - normally a Debit balance - amount you own.
Contra-Asset - Credit balance - amount you owe someone else. (liability)
Hi,
one way I know works, but is a bit ugly, is to create your prepayment
account as a negative current asset. I do something similar as some members
of a club incur expenses on its behalf, which goes to their current account
as a negative asset, and I then use this to clear off invoices in their
