[GNC] How to balance correctly a particular transaction which involves debt?

[will at theprescotts.com]

IANAA (I am not an accountant), but I handle that situation in my personal books with an expense account named "Reimbursable expenses". When the money is spent I credit it to Reimbursables, and when the money is repaid, I debit it to Reimbursables.

Will

On 2020 Sep 21, at 09-21 09:35:39, Christopher Lam <christopher.lck at gmail.com> wrote:

Well you'd use the description field to describe the narrative of the
transaction. "Bought $50 of books from Shop for friend". Later on when
friend settles debt into your bank you'd write "recover $50 from friend".

This approach would mean the widget shop shouldn't appear in your expense
report. IMHO.

On Mon, 21 Sep 2020, 10:25 pm Daniel Fishman, <quantera at gmail.com> wrote:

> On 9/21/20 5:15 PM, Christopher Lam wrote:
>> I wouldn't add an entry into Expenses:shop -- you didn't exactly spend
> your
>> money into this shop.
>> 
>> Spending/lending money:
>> Liability:credit card -$50
>> Asset:Friend owes me +$50
>> 
>> Recovering funds:
>> Asset:Friend owes me -$50
>> Asset:Cash or bank +$50
> 
> It seems to me that using the
> 
> Liability:credit card -$50
> Asset:Friend owes me +$50
> 
> loses a bit of information, since a credit card statement will list the
> shop
> as the receiver of the money. It seems to me that by omitting  the shop
> from
> being mentioned in any of the entries will make it more difficult to
> correlate
> the credit card statement with an information in gnucash.
> 
> 
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