What's the best way to record this?

[Lincoln A Baxter]

Whoops... accidently sent before finishing...

On Sun, 2011-01-02 at 22:50 -0500, Lincoln A Baxter wrote:
> On Sun, 2011-01-02 at 20:48 -0500, Michael DeBusk wrote:
> > "Ryan Flegel" <rflegel at gmail.com> wrote:
> > 
> > >What's the best way to record this?
> > 
> > Using a liability account is the correct way. I see nothing wrong with doing it the other way, though, if it's a one-time thing.
> > 
> I don't think so... when someone owes you money, it is a liability for
> THEM, and an ASSET for you.  The correct way to record this is with an
> Asset account.  All loans YOU make to others, are assets to you.  All
> money borrowed from others are your LIABILITIES.  (Think Credit Card --
> which is a liability to you -- and an asset to the bank)  When you lend
> you are the bank.
> 
> I have a asset accounts for each person that owes me money:

Assets:OwedToMe:wife
Assets:OwedToMe:son
etc...
 
>