Handling payments in advance

[Derek Atkins]

Oliver Kiddle <okiddle at yahoo.co.uk> writes:

> The problem is that I'm not sure what account type I should use for the
> payments in advance account. It isn't an asset and neither is it an
> expense. An equity perhaps? A/Receivable is perhaps the closest?
> Or is there a better way to handle this?

It's a Liability.

> Oliver

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available