What's the best way to record this?
rflegel at gmail.com
Sun Jan 2 23:00:51 EST 2011
On 2 January 2011 21:52, Lincoln A Baxter <lab at lincolnbaxter.com> wrote:
> 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:
Thanks, I think I'll go with this setup. Like I said, I basically have
this already, but I guess I didn't want to create an account for each
person when I might only ever lend them money once and only in small
amounts. I'll create an Assets:Owed To Me:Other where I can record
smaller amounts from various people. Does this seem like a good idea?
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