Managing an overdraft

[Cam Ellison]

On 11/04/14 09:03 AM, Andrew Riddin wrote:
> Hi
>
> I have an overdraft on my personal cheque account. When I initially setup
> GnuCash, I had an asset account for my cheque account, with a negative
> balance. I then had a separate Liability account for the Overdraft
> facility, with the opening balance equalling the limit of my overdraft. Now
> I have had to increase my overdraft. But when recording this, it affects
> the balance of my cheque account, in that it does not accurately reflect
> the balance, because the increase in overdraft is a deposit, which
> decreases the negative amount.
>
> Can anybody please suggest a better way of doing this?
>
>
The overdraft is in effect part of the chequing account, regardless what 
your bank, credit union, or caisse populaire shows on your statements.  
Why bother with a separate account?  I'd delete the Liability account.  
Just for the record, my company maintains an overdraft on the chequing 
account, and when drawing from it I merely show the chequing account as 
negative.

Cheers

Cam