Problem with transaction types

[Duane Evenson]

120010362905 at post8.tele.dk wrote:
> I have a problem understanding how to report certain transactions in GnuCash. I hope somebody more intelligent than me will be able to sort it out. This is an example:
>
> On January 27th I pick up something for a friend at a store. I pay with my charge card. Because of a 40-day credit period this is not due for payment before March 10th.
>
> My friend des not want to have any outstandings, so he makes a transfer from his bank to my bank on January 31st. All settled then.
>
> As I see it the purchase that I make on Jan 27th is not an expense and the money that I receive from my friend a few days later is not an income. So what is it?
>
> I would imagine that my purchase is a cash flow liability kinda thing, but am not sure???
>
> The money coming in from my friends settlement of his debt to me is what?????
>
> Anyone out there able to help me with this one?
>
> thank you
>
> castor
>
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>   

1/27   Debit     Asset:Accounts Receivable:Friend
        Credit    Liability:Credit Card
1/31   Debit     Asset:Bank Account
        Credit    Asset:Accounts Receivable:Friend

Thus your bank and your credit card accounts will be higher until you
pay off your credit card. Your friend's account is 0.