Expense vs Liability

[Alex Hill]

I would also do the same if I did not need two seperate accounts to show the 
amount owing and paid. Using this method we can tell how much is owing (the 
liability account) but the amount paid is not listed anywhere as the expense 
account will show the full balance. If there are only a small number of 
bills it is easy to match payments to amounts (and hence only needing the 
amount paid figure to work out the amount owing) then this would be the most 
effective way.

Alex
----- Original Message ----- 
From: "Maf. King" <maf at chilwell.net>
To: <gnucash-user at gnucash.org>
Sent: Saturday, November 13, 2010 5:03 PM
Subject: Re: Expense vs Liability


> On Saturday 13 November 2010 06:44:02 Dennis Powless wrote:
>
>>
>> I guess I'm just confused.  When someone in the family goes to the
>> doctor we get a charge/bill for an amount, say 100.00 USD.  I need to
>> enter this into GC some place.  What account would it go under?
>>
>> Any ideas?
>
> HI Dennis,
>
> I am not an accountant, but I'd handle it as follows (for personal
> expenditure):
>
> if I pay the whole bill straight away, I'd use a transfer from say 
> checking to
> an expense account.
> If however, I was going to pay by 2 or more installments split over time, 
> I'd
> put the expense into GC as a transfer to a liability account, then as I 
> pay
> each installment there would be a transaction from checking to reduce that
> liability.
>
> HTH,
> Maf.
>
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