Question about secured credit card

[Andrew Sackville-West]

On Wed, Oct 10, 2007 at 07:12:03AM -0700, Micah Carrick wrote:
> I have been using gnucash all year and it's really helped me manage my 
> finances. I have a secure credit card and I'm wondering how I handle 
> this. There's a bank account "securing" the card which has $300... so I 
> create an account under Assets with a $300 balance. Then where to I put 
> ... or how to I put expenditures on this card? Under liabilities? Or do 
> I just deduct from that savings account?

I would keep seperate accounts: an asset for the securing account and
a liability for the credit card. In theory, these accounts are linked
together but for all practical purposes they aren't. That $300 stays
there indefinitely untouched by whatever transactions you have on the
credit card account. If you default on the card and they take the
$300, then you'd just transfer that $300 from the asset to the
liability to wipe it out. 

A
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: application/pgp-signature
Size: 189 bytes
Desc: Digital signature
Url : http://lists.gnucash.org/pipermail/gnucash-user/attachments/20071010/0ddc2389/attachment.bin