Credit Card

[Mike or Penny Novack]

Justin Griffith wrote:

>Hi,
>Hello list! I just got a Credit Card and wanted to set it up in gnucash to
>track purchases made with it. I am not sure what accounts to setup to do
>this. I have my checking account setup already in gnucash and got it working
>fine. I am going to be using the Credit Card to pay bills so will have
>charges on it every month. Which accounts do I need to track that with?
>Thanks!
>
>-Justin
>  
>
Justin, you should create an account for the credit card of type 
"liabilities". Each charge you make is a transaction to that account, 
likewise any interest charges and/or fees. When at the end of the month 
you make a payment from your checking account, that goes against the 
credit card account lowering the balance, or hopefully reducing it to zero.

Michael

PS -- If you receive checks daily but only make a trip to the bank to 
deposit them every once in a while, you can treat this similarly by 
creating an "undeposited funds" account of type "assets". Then when you 
do make a bank deposit it's against this account clearing the balance.