2 questions: Bank CD and line of credit

[Andrew Sackville-West]

On Wed, 22 Mar 2006 21:44:14 -0500
Bernard Fay <xi at videotron.ca> wrote:

> Hello Gnucash user,
> 
> I have 2 questions for you.
> 
> The first one is about the account "Bank CD" created by GNUCash. I would
> like to know what is it used for?

where did that come from? maybe its set-up by some wizard? I'd assume its for a bank certificate of deposit. If you don't have one, then you don't need the account.

> 
> For the second question, I would like to know how I should setup a line
> of credit account.

A line of credit is a liability like any other loan. Set up a liability account. Any time you use the line of credit you are crediting the line of credit and debiting the expense account or asset account or whatever as appropriate. When you get the statement from the line of credit, simply enter the interest charges, reconcile like any other account etc.

A

> 
> Thanks
> Bern
> 
> 
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