[Q] What is the appropriate accounting method here?

Robert Graham Merkel rgmerk@mira.net
Fri, 22 Sep 2000 01:06:38 +1100

Poe, Ted writes:
 > Here's the first of a few accounting-related questions I'd like help with
 > clearing up:
 > If I earn $100, my Assets:Checking account is increased by $100 as is my
 > Income:Salary account.
 > If I inherit (or receive as a gift) $100, my Assets:Checking increases, but
 > where would the source of the funds be?  I began to think about it as a
 > transfer of equity from one party to another with no obligation associated
 > with it, therefore my assets increase.  Is it then an Income?
IANAA, but I would record it as income, but not in a seperate account
(either "abnormal income" or a special "gifts/inheritance" account if
you expect this sort of thing to happen with some regularity).

Of course, for tax purposes, you'll need to see your accountant
anyway.  If you do it in this fashion, at least, it won't be too
difficult for them to figure out what's going on.

Robert Merkel	                           rgmerk@mira.net