How to account for rent cheque?

geo909 geo909.fora at gmail.com
Tue Mar 3 18:24:31 EST 2015


Thank you so much Edward, Dean, foxylady, and the two Michaels.. Your
responses were an enormous help.
Sorry for the late reply; there were a lot of things to digest from your
answers and I did some reading too. But I think I understand well how
accruel accounting works now, at least on a basic level.

So, given that I go with the accruel method, can you please confirm that I
get the following example right?

Let's say that, as before, every first of the month I leave a cheque of 1000
to my landlord. But now, I also have a roommate with whom I split the rent
in half. So, I do the following:

On the first of each month:
. Expenses:Rent - debit of 1000
. Liability:Rent - credit of 500
. Asset:roommate owes me - debit of 500

When the cheque is cashed:
. Assets:Chequing account - credit of 500
. Liability: Rent - debit of 500

When my roommate pays me for half the rent that I payed on his behalf:
. Asset:roommate owes me - credit of 500
. Asset:Chequing account - debit of 500

Does this look correct?

Thanks



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