loans (revisited)

Derek Atkins warlord at MIT.EDU
Thu Sep 17 10:29:14 EDT 2009


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

> As I previously mentioned I was given a loan, interest free, for $1000.
>  That money was for medical bills and computer expenses.  The kind folks
> on this list guided me to do the following:  Create Liabilities:Loan,
> enter a transaction from Liabilities:Loan showing an increase of $1000
> to Assets:Checking, enter transactions from Assets:Checking to the
> appropriate Expenses:* accounts, and finally to enter payments against
> the loan from Assets:Checking to Liabilities:Loan.  All looks right and
> I'm very happy about that.
>
> Now I've decided to track another outstanding debt.  I set up a
> Liabilities:* for it and entered a transaction showing an increase of
> the amount I owe as a transfer to Assets:Checking, and entered a
> transaction from Assets:Checking to Expenses:* for the full amount.  Now
> when I make payments they'll go from Assets:Checking to the appropriate
> Liabilities:* account.
>
> I feel like I'm finally getting it.. but if I'm not please feel free to
> set me straight.  :)  Much thanks to all that helped..

You're getting it.

Let me just throw one wrench in..  It sometimes might be useful to have
a transaction from Liabilities:* directly to the expense account.  For
example, if someone loaned you money for a dinner, instead of going from
Liab->Checking and then Checking->Expenses:Dining you could go directly
from Liability->Expenses:Dining.

So in your second instance here you might be better served going from
the Liability directly to the expense..   Unless of course the money
really did go into your checking and then to the expense.

> -- Tom

> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

-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
       warlord at MIT.EDU                        PGP key available


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