Handling of Liabilities

[Al Snell]

On Mon, 2 Oct 2000, Mike Kobler wrote:

> How does one handle loans/mortagages, etc??

Ok, you transfer the money from your liability account to your
cash/house/whatever asset account to set the loan up. Do whatever with the
new assets.

Then every time you make a repayment, make a transfer from a cash account
into the liability, and a transfer from cash to an expense account if you
pay interest seperately.

> goes to a seperate).  But, this payment doesn't show up on a Profit and
> Loss report, since it is not an "expense".

The interest is an expense, but repaying the loan is just reshuffling your
worth :-)

> Just some info on how others handle things like this would be most
> helpful!!

That's how I'm doing it anyway!

> ps. I wish i had never sold that book from the accounting class I took in
> college!!

Buy a new one... that's what I did :-)

ABS

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