[GNC] Operating Checking Account in Overdraft

[Mike or Penny Novack]

On 8/2/2018 10:15 PM, Adrien Monteleone wrote:
> GnuCash lets you create any account you want and put it (pretty much) wherever you want.
>
> Contra-Accounts are sometimes desired to be where they are as true contra-balanced accounts. Others prefer or need them on the opposite side of the equation. I think the user should decide, and not be prompted by the software or overridden by the software.
>
> If you would prefer a contra-asset to be a liability, then simply create a liability account instead and place it there.
>
Since the (initial) question was about an account of type asset, I will 
give an example where asset accounts would NORMALLY be "contra". Forget 
"current assets" for a moment and consider "fixed assets". A fixed asset 
would normally have two children under it, "basis" and "accumulated 
depreciation" << yes, the "basis" COULD have additional transactions --- 
thus some "repairs" to a farm tractor considered routine and thus 
current expenses but rarely other major things like an engine rebuild 
might be considered extending the life of the asset and thus capitalized 
over time >>  The accumulated depreciation account would be a contra 
account.

Michael D Novack