Handling payments in advance

[David Harrison]

On Fri, 28 Jan 2005 10:23:06 -0500, Derek Atkins <warlord at mit.edu> wrote:
> 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.

If you make a payment in advance, in other words a deposit, it is an
asset.  More specifically, a current asset.

> > Oliver
> 
> -derek


-- 
David Harrison, BAccS, CGA