[GNC] How to journal this transaction?

[Stephen M. Butler]

On 12/30/18 11:42 AM, gn00b wrote:
> Someone owes me $100 (Accounts Receivable). But instead of paying me $100,
> they pay for an expense of mine worth $100. How would I journal this
> transaction?
>
At some point you would have booked a transaction to create a short-term 
receivable asset with a value of $100 and the other side against 
whatever you used to lend them the money (cash, checking account, 
credit-card, etc).  Let's say you gave cash out of your wallet (also an 
asset account:

Asset:Cash  CR $100

Asset:Receivable DR $100

When that person pays your expense (say they pay $100 for your cable bill):

Expense:Cable  DR $100

Asset:Receivable CR $100

Note:  If they also paid interest of $5.00 for the use of that money 
then the last would become:

Expense:Cable DR $105

Asset:Receivable CR $100

Income:Interest  CR $5

--Steve

-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
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