[GNC] How to record it into gnucash ?

[Michael or Penny Novack]

On 4/27/2020 6:59 AM, Long wrote:
> Hello,
>
> I'm not an accounting, so that why i need your help.
>
> I assumed that my friend want to pay internet bill, but he forgot his money.
> So i will pay it for him and take my money back later. How can i record it
> into gnucash ?
>
> I am doing by this way :
> Transfer money from "Assets:Cash" to "Assets:Owed to me", when he pay to me,
> i will transfer money from "Assets:owed to me" to "Assets:Cash" . Right ?
> -------------------------------------------------------------------------------
> And other assumed :
>
> I assumed that my friend want to pay internet bill, but he ask me to pay for
> him (because he busy to go somewhere). He gave me some money to pay internet
> bill.How can i record it into gnucash ?
> I am doing by this way :
> Transfer money from "Equity" to "Assets:Cash", when i pay internet bill, i
> transfer money from "Assets:Cash" to "Equity". (Because i do not pay
> internet bill, it's him). so i won't record it into "Expense" account. Right
> ?

In the first case, you are exactly correct.

In the second, it would be the reverse. But that's not what you said. 
You would debit cash and credit a LIABILITY for this money you owe your 
friend, and then when you pay his bill, debit the liability and credit cash.

Michael D Novack