Association and group purchases paid out

[Mike or Penny Novack]

Dennis Powless wrote:

       There is no way to get around it. Just because using gnucash to 
keep the books doesn't mean that you don't need to understand the 
fundamentals of bookkeeping.

        The purchase of the shirts from XYZ Company is not an "expense" 
for your organization. If in the end your organization makes a profit 
(takes in more money for the t-shirts) then that's "income" and if in 
the end takes a loss that will be an expense.

        Your purchase transaction should debit an ASSET account "T-shirt 
inventory" and credit your checking account (if you have other things 
you buy as a group then have a parent account "inventory".

         Each time somebody buys one of these T-shirts you debit cash 
(checking if that's where their check gets deposited, possibly 
temporarily in "undeposited funds") and credit the inventory. If you 
were selling each for more than your average cost then each time one was 
bought would be a split transaction also crediting "sales" which would 
be an income account. When all the T-shirts are gone the "T-shirt 
inventory" account should be zero.

Michael D Novack, FLMI


>I'm the treasurer of my FD association.  I have converted it all to
>gnucash.
>
>We buy t-shirts from a company (that we each order and pay for) however, the
>FD will pay one check to the company that makes the t-shirts.  Then each
>member will then pay the association back for the amount of their personal
>order.
>
>I need to track this in Gnucash.
>
>I get checks that are Expenses:T-shirt Order Date 1 3 2011 for smaller
>amounts   say 50.00 or 25.67 etc...
>
>There was one check written for 705.00 to the company XYZ.  I made this an
>expense:T-shirt Order Date 1 3 2011   (We do this several times a year, so I
>assign a date)
>
>I want to be able to track how much has been paid and what is still
>outstanding (I know the person who coordinates this keeps track too)
>
>
>Should I make this a Liabitlity account?  Since it kinda a loan?  How should
>I handle this?
>
>
>Or... should I set up the whole thing as a business account?  We only write
>out checks for general stuff ie Flowers, food, misc expenses and a local
>store account for food.
>
>
>Dennis
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There is no possibility of social justice on a dead planet except the equality of the grave.