Creditors

[Mike or Penny Novack]

David Ryder wrote:

> I've been using gnucash for years in my business - but I never had 
> creditors.
>
> Now I do.
>
> I am not accountant orientated - so please could anybody tell me where 
> I put 'Creditors' and how I post them against another account (is the 
> latter equities?)?
>
> Thanks,
> David

Accounting fundamentals ---- what you owe somebody else is a liability; 
what somebody else owes you is an asset; and this is the origin of the 
terms "debit" and "credit" (he owes (me) and he trusts (me) in Latin).

What you owe your creditors is a liability for you. How you enter the 
transaction depends upon how this debt came into being (that's what 
determines the other account).

Michael D Novack