Creating an Electronic Benefits Transfer Account

[Maf. King]

On Thu 6 June 13 21:41:28 Terry Morse wrote:
> I am setting up accounting for a friend's business in GNU 2.4.13. One source
> of income to the business is an electronic fund transfer from the
> government. This is money coming in from outside, not connected to any
> sales. Thus, it is not linked to any other account for the purposes of
> double entry bookkeeping. Is there a way in GNUCash to set up an account
> into which money can "magically" appear each month, or do I need to create
> a bogus invoice to get the money into the system?
> 
> Thank you,
> Terry


Hi Terry,

Is this money a loan or a grant?

I'd handle either possibility as follows:

for a loan, create a liabilities:governmentLoan

in the case of a grant, create Income:GovenmentGrant

and then transfer the money into bank:checking from that new account.

Note, I'm not an accountant, nor do I know what rules your local tax system 
has regarding the reporting of such income, so if you are unsure, take advice 
from a professional in your locality.

HTH,
Maf.