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

[Christopher Lam]

I'd thought that "reimbursable expenses" would generally mean purchases
incurred in the course of running a business or service, and will be later
charged to the customer when invoicing them. Eg materials, supplies.
Slightly different from a friendly loan which is an asset IMV.

On Mon, 21 Sep 2020, 10:57 pm will at theprescotts.com, <will at theprescotts.com>
wrote:

> 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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