how to recors a layby

Eric E Moore e.e.moore@sheffield.ac.uk
Wed, 19 Dec 2001 00:50:43 +0000


Rob Brown-Bayliss <on_the_net@clear.net.nz> writes:

> I have an expense account for camera gear, and created a liablity
> account in the name of hte camera store.
>
> But here I am stuck, to I put the full $450 into the expense and
> liability accounts? It seems wrong?  Then do I put payment only in the
> liabilites?

Sounds right to me, but IANAA. It is especially right if you've
agreed to pay the whole $450.  The other way would be to create an
asset in the name of the camera store, put the payments into it, and
when it all accumulates, transfer from the asset to the camera
expense.  My guess is, if you can get all the money back if you change
your mind, without any fees, then the money the camera store has is an
asset (they're basically just holding onto your money as a
convenience), but if there's some penalty (or no refunds at all), then
you've bought that camera, and owe them the money.

  -Eric