Under what accounting head should this account be created?

[Colin Law]

On 14 July 2015 at 12:14, nosherwan <nosherwanh at gmail.com> wrote:
> Thanks mike, thats what I was thinking about.
>
> so if I create accounts like so, should I only create one account? or
> should I create two accounts for the same person?

Definitely only one account.  Then the balance shown on the account
will be the amount you owe him or the amount he owes you depending on
the current situation.  A positive value in one case and negative in
the other.  I normally put such accounts under Assets, in principle it
is no different to a bank account that provides overdraft facilities.

Colin