Creative accounting

[Kim C. Callis]

Actually, I believe the issue is how I phrased my question since I tend to
be very verbose at times. The real question that I was attempting to ask
was if the client wants to charge me rent, it would be an Accounts Payable
issue. So with that I would create an expense of Rent: Business. Now I need
to invoice the client (the same client that I am "paying" rent to) for my
billable items. Again, not a big deal, it becomes an AR entry. The issues
was how to take the Rent: Business and pass to the AR: Client so that it
would reduce the overall receivable so that is would be my billed time -
Rent: Business and that would reflect properly.

So the questions was one of professional advice, but more an issue of how
to encode the information in GC.


On Tue, Oct 1, 2013 at 8:05 AM, Mike or Penny Novack <
stepbystepfarm at mtdata.com> wrote:

> 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
>