Credit Card Account...

[Doug Laidlaw]

On Thursday 05 June 2008 11:20:34 pm Derek Atkins wrote:
> Hi,
>
> Davey Benson <the.lounge at btconnect.com> writes:
> > Hi really enjoying GunuCash but trying to figure out this one...
> >
> > Under Liabilities I have Credit Card so I've entered some purchases
> > under payments, say to the tune off £250 then transfered £250 from my
> > current account which is in Assets. Credit Card Account is showing -£10
> > when it should be in the black and purchases are also shown in black
> > despite being a charge on the card - Just a bit confused and probably
> > missing something very simple :)
>
> Yeah, you messed up.  Your purchases should appear as a CHARGE to
> your credit card, because it's a credit to CC and debit to Expense.
> You entered them backwards.
>
> > Please remember to CC this list on all your replies.
> > You can do this by using Reply-To-List or Reply-All.
>
> -derek

I find it very difficult to come to terms with this.  For example, when my 
bank account is in credit, that means that as far as the Bank is concerned I 
am a creditor.  In my books, I have an Asset, therefore a debit.  If I said 
to someone "I have a debit in my Bank Account" they would start to worry.

Credit cards are simply the reverse of that.  The bank is your creditor.

HTH,

Doug.