[GNC] Operating Checking Account in Overdraft

[Maf. King]

On Tuesday, 31 July 2018 08:14:14 BST Murray Field wrote:
> Hi,
> 
> We have a permanent overdraft with our bank and we operate our account
> fluctuating within   the overdraft limit approved.
> 
> How should this be classified in gnucash?
> 
> As an asset, a liability or something else? We could not find any reference
> to our situation in your guide which we have downloaded.
> 
> We are potential new users.
> 
> Kind Regards,
> 
> Murray and Yvonne Field

Hi, welcome to the list.

I would create the bank account as an asset and let it have a negative 
balance.  That way, your view of the account will match the Bank's view... 
(running balance when overdrawn is a negative number)

As Adrien said, a local accountant will know your local regulations and norms 
and may be able to advise - I'm not an accountant.... but if this is for 
personal (not buisness) records, there is normally a lot of leeway in what you 
can do, as long as you are consistent!

0.02
Maf.