Handling Purchase Advances

[Cat P]

To mirror the situation I would do it this way:

1) $100 debiting savings account and crediting accounts receivable
showing what you friend owes you
2) $89 debiting accounts receivable and crediting wallet
3) $11 debiting accounts receivable and crediting wallet

I use a liability account to show what I'm owed as well as my debts, but
the main thing is that income and expenses accounts are not affected.

Hope this helps.

Cat



On 20/06/2013 11:59, Sanjay Chakravarty 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
> 
>  
> 
> From: Subramanian Venkateswaran [mailto:subramanian.venkateswaran at gmail.com]
> 
> Sent: 20 June 2013 16:22
> To: Sanjay Chakravarty
> Cc: gnucash-user at gnucash.org
> Subject: Re: Handling Purchase Advances
> 
>  
> 
> You need to enter the transaction exactly as they have occured.
> 
>  
> 
> I assume you have the following accounts : Cash in Wallet, Income : Others,
> Asset: Savings Account : Bank A, Expense Account : Gadget, Expense Account :
> Gifts.
> 
>  
> 
> a) Transfer of 100$ from Income:Others to Savings Account : Bank A
> 
> b) Transfer of 89$ from Cash in Wallet to Expense Account : Gadget
> 
> c) Transfer of 11$ from Cash in Wallet to Expense Account : Gifts
> 
>  
> 
> You may choose to enter a), b) and c) in the description of all the
> transactions.
> 
>  
> 
> Regards,
> 
> Subramanian V.
> 
>  
> 
> www.lifebytes.in
> 
>  
> 
> On Thu, Jun 20, 2013 at 3:46 PM, Sanjay Chakravarty <sanjaychak02 at gmail.com>
> wrote:
> 
> Dear All,
> 
> 
> 
> Here is a scenario I want to record in gnucash but I don't know how.
> 
> 1. My friend gives me $100 to buy an item. He deposits the amount in my
> bank.
> 2. I already have $100 in my wallet, so buy the item for $89 from my wallet.
> So balance $11 is to be paid back to my friend.
> 3. When we meet, I return $11 in cash to him from my wallet.
> 
> Usually I use Assets::Reimbursements when purchases are made in advance for
> someone (like official), and I get reimbursed exact amount. Here, an advance
> is being made, and that too into the bank. How do I setup the above 3
> transactions in gnucash?
> 
> 
> 
> Regards
> Sanjay
> 
> 
> 
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