[GNC] How to record personal owe to me and how to record equity?

[Stan Brown]

On 2019-12-06 04:10, TFFinances wrote:
> How to record personal owe to me and how to record equity?
> 
> If my dad owe me money, how will i record it?
> 
> what would the debit and credit be ?
> 
> How to record equity ?? equity debit and what is credit?

Hi, Terence!

When your dad lends you money, then:

Debit: Cash (or a bank account)
Credit: Loans Payable

There's no change to equity because Assets and Liabilities increased by
the same amount.

When you make a payment on the loan:

Debit: Interest Expense
Debit: Loans Payable
Credit: cash (or a bank account)

You don't make any transaction directly intro an equity account. But if
you run a Balance Sheet, that interest expense will reduce your Retained
Earnings, which is an  equity account that GnuCash creates automatically
as part of that report.

-- 
Regards,
Stan Brown
Tompkins County, New York, USA
https://BrownMath.com
http://OakRoadSystems.com