How to account for rent cheque?

[Michael DeBusk]

On Wed, Mar 4, 2015 at 2:49 AM, Dean Gibson <gnucash.stuff at ultimeth.com> wrote:

> I disagree.  If everyone makes accrual accounting mysterious or complicated
> (it's not), then a lot of users won't take advantages of the real features
> of accrual accounting.  If someone pays every bill when they get it, and
> never does any budgeting (even short-term), and doesn't want to learn
> anything more than simple expenses, then maybe you are right.  But if
> someone wants to LEARN, I don't see the point in discouraging them.

When he made it clear that it was something he wanted to learn, I
stopped trying to discourage him.

> I do admit I'm a bit pedantic.  When I get a paycheck, I record each of the
> deductions as part of the deposit.  Most of the deductions are expenses, but
> the withholding for income tax I post to a "pre-paid taxes" asset account
> (because I don't know the actual expense amount).  When I do my income tax
> filing, is when I post the actual (ie, known) tax obligation as an expense,
> with a credit to the pre-paid taxes account, and an adjustment to my
> checking account or an accounts-receivable account.

I'm an almost-all-cash-basis guy myself, but I do use a couple of
accrual-style accounts for taxes so the numbers stay in the
appropriate year. I have a Liabilities:Taxes Owed and an Assets:Taxes
Overpaid.

I think I have done the same with rebates, too, but I can't recall. I
hate those things. So rarely are they worth the effort.

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