Dealing with business items paid for with a personal credit card

[Des Dougan]

On Mon, 2006-05-08 at 20:23 +1000, Elizabeth Dodd wrote:
> On Monday 08 May 2006 16:31, Wouter van Marle wrote:
> > On Sun, 2006-05-07 at 23:08 -0700, Des Dougan wrote:
> > > I found it necessary during last month to use a personal card for goods
> > > which I acquired on behalf of clients. I use GnuCash solely for my
> > > business, and I would like to determine how I can show these purchases
> > > correctly so that my income is not over-stated.
> >
> > Just add a credit card account to your business account tree the way it
> > is described in the manual (account type "credit card"), and add only
> > the items that are related to your business into GnuCash. That's how I
> > do it.
> >
> > When paying off the credit card, I always pay everything from my company
> > account, booking the cheque as split transaction: partly to the credit
> > card, partly as personal cash taking (which is an equity account; see
> > thread from me a few weeks ago), thereby accurately setting the date of
> > the particular transaction by credit card, and accurately keeping my
> > income. You could of course also make separate payments from your
> > company and personal account, and again only book the company payment to
> > that credit card account.
> >
> > Wouter.
> 
> I maintain a liability account for anything I buy for the business. Whether it 
> is credit card, debit card or petty cash, I list it all there and pay myself 
> back periodically.
> 
> 

Wouter and Elizabeth,

Thanks to both of you for your direction - one of these days, I'll
really understand what I'm doing...


Regards,

Des
-- 

Des Dougan, Principal
Dougan Consulting Group

Ph: 604-980-2848       Email: des at DouganConsulting dot com     

        www.DouganConsulting.com

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