How would you handle this situation?

[David Ryder]

Hi,
I have something I just can't get my head around.

Situation:
1. I have two sets of books: one for my UK bank accounts and another for 
my overseas bank accounts. They have to be separate.

2. I have received an amount of, say, £10,000.00 to use for my father's 
care and the balance repayable to his estate. Asset or Liability?

3. Any amount used for him must be recorded - no problem there, it's an 
expense.

4. Because my personal capital is overseas, to avoid foreign exchange I 
can use some of the GBP money. But, each amount I use for myself must be 
recorded thus:
a) There must be an entry in the GBP account recording that I spent £x. 
This must be 'transferred' into an account, e.g. an account like 'Spent 
by David'. What sort of account would this be? Expense, liability or 
equity (equity as it is a debt in effect?)

b) An equivalent amount in one of my overseas accounts must be 
transferred into one of my overseas Savings Accounts at the then 
exchange rate. No problem there.

5. PROBLEM: If I use an amount, it comes out of the account with a 
corresponding entry in 4a.

By 'transferring' that amount again to an 'I owe Dad' account, the same 
amount is being paid twice. Once when I spend it, second when I 
'transfer' it to 'I owe Dad'.

Can anybody help?

David