How do you manage personal "receivables"?

[Geert Janssens]

On Saturday 31 January 2009, Rafferty Uy wrote:
> Hi,
>
> Just wondering how you guys manage temporary (and extremely short term)
> loans by friends?
>
> What I did was to create an Accounts Receivable and Account Payables
> account.
>
> If my friend borrows money from me, I'll count it as an expense and place
> the entry in accounts receivable. Then when they pay me back, I split the
> AR transaction and enter as income the amount payed back. But I'm not sure
> if this is the correct way... because the date that the money is payed back
> is no longer accurate (because I'm editing an old transaction). However, if
> I do it separately, it can be confusing which receivable is payed and which
> receivable isn't.
>
> What's the recommended way to do this?
>
Borrowing money has nothing to do with income or expense.
I would use this transactions:

* 100.00 borrowed to a friend on 10/01/2009:
Date		Description	Account				Amount
10/01/2009	Friend X	Assets:Cash			-100.00
10/01/2009	Friend X	Accounts Receivable	100.00

* Friend pays me back at 21/01/2009:
Date		Description	Account				Amount
21/01/2009	Friend X	Assets:Cash			100.00
21/01/2009	Friend X	Accounts Receivable	-100.00

If you wish to know how much Friend X still owes you on date Y, you can create 
a transaction report on the Accounts Receivable account, and group/sort on 
description.

Alternatively, if you have friends you regularly borrow money to, and you want 
to track these friends separately, you can create subaccounts of A/Receivable 
for each friend and use these subaccounts in the above transactions.

Hope that helps.
>
> Thanks!
>
>
> Rafferty D. Uy
> Software Engineer @ ease solutions Pte. Ltd.
> MBA Student @ National University of Singapore
>
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