Bookkeeping Question - Credit Against Future Charges

[Buddha Buck]

This is an accounting question, not a GnuCash question. But I'll give my
answer anyway.

You have received an asset in the form of prepaid conference room charges.
So create an asset account called "Prepaid Conference Room Overages" or
something, and debit it with the amount of the "substantial credit". The
other side of the opening transaction should be an income account, probably
miscellaneous income.

When you have an appropriate conference use charge, debit the expense
account you normally use, but credit the "Prepaid Conference Room Overages"
account.


On Sun, Dec 18, 2016 at 3:11 PM Benjamin Soffer (SLF) <
bsoffer at soffer-law.com> wrote:

> Hello,
>
>
>
> In the suite where my office is located, I have the right to use the common
> conference room for a fixed number of hours per month.  I have to pay an
> hourly rate for use of the conference room when I exceed the fixed hours
> limit.  Recently, there was a huge problem with the telephone system in the
> suite, so the landlord agreed to give me a substantial credit on his books,
> which I can use only if and when I incur future charges for conference room
> use (but not against regular future rent).  How do I account for this
> credit
> in my own books?
>
>
>
> Thank you,
>
> Ben
>
>
>
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