How and when to use ....
dartme18 at gmail.com
Fri Oct 21 13:39:51 EDT 2016
On Fri, Oct 21, 2016 at 12:06 PM, gargameow <lipchg at gmail.com> wrote:
> Hi all,
> Just another separate list of questions.
> 1) In real life, I have 10k in my bank account.
> So to use GNUCash, I create an entry in Equity > Open Balances (Increase
> column) with Tranfers to Asset > Bank Savings account. Is that correct?
> do I use the decrease column in Open Balances?
This is correct. The transaction you describe can also be described as
Opening Balance CR $10k
Bank Savings DR $10k
Then, your question becomes more recognizable: "When do I debit Opening
Balance?" This would be necessary to set the opening balance of liability
> 2) When I borrow money from friends to buy a car, I have to create an entry
> under Liabilities > Loans with amount put under "Increase" column, is that
Yes. The liability is increasing.
> For 'Transfer' column, what do I link it to?
> 1) Assets > checking account? or
> 2) Assets > bank saving accounts? or
> 3) Assets > cash on hands? or
> 4) Directly to Expenses > Car?
> Depends on where your money went. If your friend paid for the car himself,
you *might* use 4). Perhaps the friend gave you a cheque which you
deposited, then you wrote a cheque for the car? 1) is the answer in this
case. If you deposited to Savings, then 2. If the friend gave you cash,
Enjoy using gnucash!
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