"Double Dating" transactions?

[Aaron Gaudio]

On Thu, 2004-09-02 at 16:42 -0400, Dave Reed wrote:

> I think so, but please give me a concrete example so I'm
> certain. Here's an example from me. Let's say after figuring my taxes
> in February I determine that I am due a $500 refund. This means my tax
> expense account currently shows me paying $500 more than I owe for the
> year, although it does match what I've actually paid. I now make a
> transfer from the tax account to this new "Tax Refund" asset account
> dated 12/31 so that the tax expense account shows what my actual tax
> for the year was. The "Tax Refund" asset account has that amount which
> I now expect to get back from the tax department.
> 

Keep in mind that if you do this, and you examine your monthly income
for the previous year, the first 11 months will show more expenses and
less profits than is justifiable, and then December will show much less
expenses and greater profit. To avoid this, one would have to
retroactively modify each tax payment and add a split to the Tax Refund
account in the appropriate amount.

> When they send me the check and I deposit it, I make a transfer from
> the "Tax Refund" account to my cash bank account, giving the Tax
> Refund a balance of zero again.



-- 
Aaron Gaudio <prothonotar at tarnation.dyndns.org>