Tax refunds

Tim Kynerd tim@kynerd.nu
Tue, 1 Oct 2002 17:03:26 +0200 (CEST)


On Tue, 1 Oct 2002 plussier@mindspring.com wrote:

>
> In a message dated: Tue, 01 Oct 2002 13:10:34 +0200
> lmb said:
>
> >Hi all,
> >
> >quick question, not entirely gnucash related. ;-)
> >
> >I've finally done my tax paperwork, and am now expecting a refund (well, that
> >is the plan at least).
> >
> >So, how to I book this?
> >
> >Is it coming in via an Income:Refunds account, or do I deduct it from
> >Expense:Taxes ?
> >
> >Another issue would be that it is a refund for 2001; but will show up in 2002.
> >Is that proper or should I book it on 2002-12-31 so it shows up in the right
> >year?
> >
> >BTW, at the end of the month, I'll have been using gnucash for exactly a year.
> >It helped immensely to track where my money was or was not going. Thanks a
> >bunch!
>
> I book it as a debit to the Expense:Taxes account and a credit to the
> Assets:Checking (or whatever).  I wouldn't consider it income, since
> it's money you've already paid out as an expense coming back to you.

I think you mean the other way around. IAAA (at least, I majored in
accounting in college), and debiting an expense account INCREASES the amount
of the expense. Crediting an asset account DECREASES the balance of that
account.

>
> IANAA, but I look at it similarly to purchasing something at WalMart,
> then returning it for a refund.

Regards,
Tim

Sunrise in Stockholm today:  6:52
Sunset in Stockholm today:  18:23
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