Good afternoon, I (think I) do understand the textbook definition of the above, but I find myself in doubt in many cases around how I would model a certain transaction.
On the face of it, it is very simple: if I spend $100 painting my room, that's clearly an expense. Buying a car is clearly turning one asset (cash/bank balance) into another one (the car itself). But then, fitting new wheels to the car is an expense, but then it is also making the car worth more, so at the same time there's an appreciation involved. (Or is the set of wheels another asset, that happens to be fitted to the car "temporarily"). Also, let's think buying furniture: it's an asset, as I either use it long-term or perhaps sell it, when I move, and need different ones for the new house. But it can be also seen as an expense relating to me living in my current accommodation. (Similar to utilities.) First I thought, the deciding factor might be, whether I can (or whether I expect) the thing to be re-sold. But as the above examples show, it's not always as clear cut in advance. I might sell it, I might keep on using it, or might sell it as part of another asset (the flat or the car). So, I'd be really curious, how others see this, and how they keep their books manageable. Let me know your thoughts. Regards, Daniel -- --- You received this message because you are subscribed to the Google Groups "Ledger" group. To unsubscribe from this group and stop receiving emails from it, send an email to ledger-cli+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/ledger-cli/CAD6oR3FCf0_XxTddBRE-H4cZOVDS2wM-8TzYNPKya2c6rH_Edg%40mail.gmail.com.
