confusion about lending money
Eric E Moore
e.e.moore@sheffield.ac.uk
Mon, 04 Nov 2002 19:08:59 +0000
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chris <reddaemon@shaw.ca> writes:
> hi. i have started using gnucash recently and i really like it. however
> i have some transactions i would like to enter but i am not sure how to
> do so.
>
> i hold the lease on my apt and my roommate bob (names and figures are
> made up) pays me half the rent. rent is 600. rod was short this month so
> i spotted him 20. i would like to keep track of how much he owes me
> because the amount he really owes is alot to me.
>
> so i was wondering
>
> how do i enter in the initial transaction?
I'd set it up like follows.
Set up the following accounts:
Cash (asset)
Rent (expense)
A/R Rod (asset)
Each month, when you pay the rent:
credit cash $300 debit rent $300
credit cash $300 debit A/R Rod $300
When rod pays you:
credit A/R Rod $280 debit Cash $280
And only track your share of the rent as an expense.
Alternatively, if you want to track the full amounts,=20
add a "money from rob" income account.
Each month:
credit cash $600, debit rent $600
credit "money from rob" $300, debit A/R Rob $300
and when rob pays you $280 transfer the money from A/R Rod to Cash.
> how do i settle the accts if he pays me?
transfer the remaining $20 from A/R Rod to Cash.
> how do i settle the accts if i force him to pay a bigger share of the
> cable/internet bill to even things out?
However much cash you put up, put towards the cable expense account,
and take the extra of your share from A/R rob.
> how do i settle the accts if he doesnt pay me and i cant make him pay a
> bigger share of the cable/internet bill?
Create an expense account called "Rob sucks" and write-off the debt
by transfering the money for A/R Rob to "Rob sucks"
=20=20
> if i am not mistaken the money rod owes me is an acct receivable and is
> an asset. i am pretty sure that a/r rod is supposed to have a positive
> balance and that cash gets credited.
Almost right.
> db cr
> rent 600
> cash 300
> money from rod 280
> cash 20 money lent to rod
> a/r rod 20 a/r rod has positive balance now
> ??? 20
> this looks mostly right but its imbalanced. there is something i need to
> do but what?
db cr
Rent 600
Cash 600 money you're responsible for paying
A/R Rod 300
Rod Income 300 money you've earned from rod
Cash 280
A/R Rod 280 money you actually got from rod
At this point. A/R Rod has a balance of $20.
>
> payment
> db cr
> money from rod 20
> cash 20 cash is increased
> a/r rod 20 should be made zero
> ??? 20 imbalance. whats wrong?
>
> if i consider ??? an account everything balances :)
One too many transactions. consider actually getting paid as
converting an asset (the promise to pay you $20) to another asset ($20
in green stuff that folds)
> force him to pay a bigger share of the cable/internet bill
>
> db cr
> cable/internet 25 this is what i wish i was paying :)
> cash 5
> a/r rod 20
> i think i have this right
right.
> write it off
> db cr
> money lost 20 *sniff* goodbye :(
> a/r rod 20
>
> i think i have this right too.
right.
> help me please :)
did this help?
--=20
Eric E. Moore
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