Liabilities & Expenses

[Derek Atkins]

"T. Howell-Cintron" <lists at kathera.com> writes:

> I have previously configured a loan such that the Liabilities:Loan
> showed an increase in Assets:Checking, and subsequently added some
> transactions from Assets:Checking to Expenses:* totaling the amount
> loaned in the first place.  This worked well.
>
> I have another debt I'd like to track and I'm thinking I may have
> overlooked an easier way of doing it.  If I create a Liabilities:*
> account showing an increase for the correct amount and set the transfer
> directly to Expenses:* I could skip the A:Checking->E:* step entirely.
>
> Is that the proper approach?

well, it depends.  Did the money ever hit your checking account?
Or did the loaner pay the expense directly on your behalf?

You should model the actual flow of money.

> With regards,
> Tom Howell-Cintron

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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