Creative accounting

[Mike or Penny Novack]

Kim C. Callis wrote:

>After a long hiatus, I have decided to start using GnuCash for both
>business and personal use. As I was setting things up, I realized that
>I had a recent invoice that I needed to submit. I am doing work at
>clients hotel, and he is charging me rent for one of his room (Yes, a
>crappy deal, but it discounted)..........
>
>  
>
Maybe you had best discuss this with your tax accountant? We aren't 
"qualified" (even if we know the answer) to tell you what to do in a 
situation like this. I will go as far as to say that I suspect you might 
be too "creative" considering this as "not real money" (that strictly 
speaking you should consider the full amount income even though you 
aren't receiving it all in cash). Remember. an asset account isn't the 
only way money can be coming in or out (also change to a liability 
account or an equity account --- in a sense, income and expense accounts 
are temporary accounts of fundamental type equity which would be more 
obvious if you did a "close the books" operation).

Michael