How to record tips
warlord at MIT.EDU
Sun Apr 11 15:16:44 EDT 2004
Floyd Hagen <flohagen at montanadsl.net> writes:
> Could someone tell me how to properly record tip money in the US? My
> wife makes tips where she works, and this is new to me.
> It looks like they tax her tips in her paychecks, but subtract that
> amount out from the net pay, since she already got it.
> I've set up a Income:Wife Salary:Tips account. I did a split
> transaction in our Assets:Checking account and part of that was a
> deposit to Income:Wife Salary:Tips. The Assets:Checking account
> balances out, but the Income:Wife Salary:Tips account shows a negative balance.
You've got it backwards.. You want to pull money OUT of the
income account and deposit it into your checking (or cash)
> We use the tip money as spending cash, so I guess I need to somehow
> record the tips as income as well as an asset, and somehow get the
> checking deposit to balance out. Right?? How do I link 3 accounts?
In this case you can just have two transactions:
I:WS:T -> Assets:Cash
I:WS:S -> Assets:Checking
Do all the entering from the asset accounts and the direction
will make sense, because you can see whether the money is coming
into or going out of the asset account.
Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
Member, MIT Student Information Processing Board (SIPB)
URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH
warlord at MIT.EDU PGP key available
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