Doubt on financed purchases representation

[Luiz Carlos da Costa Junior]

Thanks Michael for your answer...
I was suspecting that I would need a 3rd account (the reliability) to
represent this correctly.
Regards,
Luiz

On 30 January 2012 00:05, Mike or Penny Novack <stepbystepfarm at mtdata.com>wrote:

> Luiz Carlos da Costa Junior wrote:
>
>
>> Now I did a financed purchase of 10 bottles that I will pay in 10 months
>> but I already got all bottles. This transaction will be split in 10, where
>> I will charge my banking account once a month. And I have already sold all
>> 10 bottles.
>>
>>
> You didn't pay for them at the time you got the bottles. You incurred a
> liability for them. So the initial transaction would be debit bottles,
> credit liability.
>
>
>  If I split the bottles putting each one of the 10 transactions, my stock
>> account will be negative until the last split come into it.
>> On the other side if I put all 10 bottles in the first transaction, my
>> stock account will be ok, but the price of the bottles in this transaction
>> will be wrong.
>>
>>
> No, none of the ten monthly payments you make affects the  bottles
> account. Would be a debit to the liability (reducing it) and a credit to
> your banking account
>
>
>  How should I represent this purchase?
>> Suggestions?
>> Have someone faced something similar?
>>
>>
> Yes, of course. Anytime I bought something with a credit card for example.
> Or a car with a loan, etc.
>
> Michael
>
>