Handling Purchase Advances

[Guus Bonnema]

On Thu, 20 Jun 2013 16:29:13 +0530
"Sanjay Chakravarty" <sanjaychak02 at gmail.com> wrote:

> Thanks, Subramanian. Only we are unable to setoff 89$ and 11$ against the
> 100$ if we simply record the transactions. If we do as you mentioned, these
> will be 3 unrelated transactions that do not reflect the fact that
> ultimately they have no impact on my finances. I just did a service. I don't
> want to figure these transactions against my income or expenses.
> 
>  
> 
> Regards
> 
> Sanjay
> 

Sanjay,

Just book all three transactions in an account that will amount to 
zero. A suspense account, like a temporary loan. The 100$ would be an increase
and the 89$ and 11$ a decrease. That way it should not appear as income, but it
is still weird.

If all was in cash, you wouldnt have to register it, because its a null
transaction. Actually, it is neither your money, nor your goods. You are only
registering it, because your friend sent the amount to the bank.

Hope this helps.

Guus.