Establishing a new line of credit account...

[Ken G.]

I have been using GnuCash for several years now and now I have a 
problem. How do I establish a new line of credit account of $500? Is it 
an asset for $500 and a liability for zero cents? When I purchased 
something say for $5, would I deduct $5 from my asset account showing a 
balance of $495 and a liability for $5? I would assume I would start 
with an opening balance of $500 debit and $500 credit to Equity account.

Thanking you in advance for your help and suggestion. Gosh, it has been 
54 years since I had my high school bookkeeping class.

Regard,

Ken Green