how to recors a layby

[Linas Vepstas]

On Wed, Dec 19, 2001 at 06:18:07PM +1300, Rob Brown-Bayliss was heard to remark:
> 
> > Does this all make sense to you?
> 
> Yes, more so t hat the liabilite at least, so my asset grows with each
> payment to the store, 
> 
> Next question, my payments come from another asset account (savings at
> bank), so I am transfering from one asset to another, total assets
> remain the same correct? 

For a while, yes.  If you can't get some of your money back, that would
be an expense.

> So the camera gear is always an asset, but if I ever sell it I wont get
> what I paid, at this point what do I do with the difference, the
> depreciation?  Pop it in to an expense account?

Yes.

> Truth is that for home accounts I did not see the point in recording
> computers and other toys as an asset, cars and houses sure.  Maybe I
> should... 

Its a hassle to track small items as assets; its easier to 'expense' them: 
i.e. to pretend that they've depreciated 100% on the day you bought them, 
i.e.  to pretend they're now valueless, and record that depreciation as an
expense.

Seriously, do you think you'll find a buyer for your half-full, week-old
gallon of milk?  No, you've "deperciated" it 100% the day you bought it.

--linas


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pub  1024D/01045933 2001-02-01 Linas Vepstas (Labas!) <linas@linas.org>
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