Another example recently discussed in
https://wiki.gnucash.org/wiki/User_talk:Christopherlam
Businesses aim to make money and GST is charged on that income so it
follows GST is a liability. Liability:GST:GST on Sales (ie tax collected)
and Liability:GST:GST on Purchases (ie tax paid) shows the
Chris,
As someone suggested earlier , you question indicates that you need to better
understand double entry bookkeeping
(https://gnucash-docs-rst.readthedocs.io/en/latest/guide/C/ch_basics.html#accounting-concepts
That explanation is still fairly cursory. A search online for "double entry
On Mon, Jul 24, 2023 at 06:08:00PM +0100, Fred Bone wrote:
> On 24 July 2023 at 16:53, Chris Green said:
>
> > Is there a 'right' way to handle an account which gets payments in two
> > directions?
> >
> > E.g. I have good relations with a friend and we often buy things for
> > each other and
I do this with family and friends often.
The simplest options are *either* asset or liability, based on whichever
you like, or which one you think will most likely be the case. (if they
more often owe you - then asset, otherwise liability, or just pick one,
it doesn't matter)
I chose to
On 24 July 2023 at 16:53, Chris Green said:
> Is there a 'right' way to handle an account which gets payments in two
> directions?
>
> E.g. I have good relations with a friend and we often buy things for
> each other and settle up at the end of the month. Sometimes I owe the
> friend some
I tend to create these as Asset type accounts (I loan value to my buddy so
this is Accounts Receivable or something for which I am to be reimbursed).
That way a negative amount means I owe my buddy.
It could also be a Liability account in that I borrowed from my buddy and
it is an Account
I think you need four accounts?
Asset:Me
Asset:Jim
Expense:Me
Expense:Jim
Transactions;
Asset:Me -> (dec) $10 -> Expense:Jim (inc) $10 (bal) $10
Asset:Me -> (dec) $15 -> Expense:Jim (inc) $10 (bal) $25
Asset:Jim -> (dec) $5 -> Expense:Me (inc) $5 (bal) $5
Jim's expenses == $25
Me's
I'd set that account up as a credit card. Or I'd use Venmo for payments
between friends.
On Mon, Jul 24, 2023 at 10:54 AM Chris Green wrote:
> Is there a 'right' way to handle an account which gets payments in two
> directions?
>
> E.g. I have good relations with a friend and we often buy
Is there a 'right' way to handle an account which gets payments in two
directions?
E.g. I have good relations with a friend and we often buy things for
each other and settle up at the end of the month. Sometimes I owe the
friend some money, other times the friend owes me some money but it's
very
