Confused About Ledger Payment, Charge, and Balance Values

[Yawar Amin]

On 12/24/09 5:53 PM, ThreeDot said:
> [...]
> But my credit card ledger shows:
>
> Payment     Charge       Balance
> ----------    -----------    -----------
> $100.00                       -$100.00
>                  $25            -$75.00
>
> This seems wrong. Payment should increase the balance while purchases should
> decrease it. What am I missing?
> [...]

In GnuCash, your credit card is a liability account, so the register
shows the balance as a credit balance, that is in terms of what you owe
to the credit card provider. Paying $100 to the provider means you don't
owe them anything more--in fact, they owe you $100. Charging $25 means
they now only owe you $75.

HTH,

Yawar


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