Establishing a new line of credit account...

[Buddha Buck]

On Thu, Sep 18, 2014 at 12:38 PM, Ken G. <beachkidken at gmail.com> wrote:

> It is a line of credit from Paypal and I intend to use it only on eBay. I
> would like to know that is my current line of credit and what do I owe to
> pay back. There is no monetary transfer to my checking account.


In that case, create the account as an empty liability account.

When you buy something on PayPal, debit the appropriate Expense/Asset
account and credit the Line-of-Credit account.

When you get a statement saying you accrued interest charges, debit your
interest expense account and credit the LoC account.

When you make a payment, debit the LoC account and credit your checking
account.