Borrowing Money (no interest)

[Derek Atkins]

picosam <picosam at gmail.com> writes:

> Thank you! And so it's normal that the account labelled Personal Loans then
> has a positive balance of 500$?

Yes, because GnuCash tries to help you by sign-reversing certain
accounts that are "always negative".

> Also, let's say that I opened my Personal Loans liability account with an
> existing outstanding balance of 3000$ (like a previous loan from a friend
> that has already been spent) - would that also come from Equity?

You should generally only use "Equity" if the account existed before you
started using GnuCash (except in certain cases where it's a transfer
between different GnuCash books).  In this case, did the 3000$ exist
prior to your starting to use GnuCash?  If so, then yes, create the O-B
from Equity, because the balances are already included in your other
O-Bs in other accounts.

> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available