[GNC] How would one record "Provision for liabilities" ?

[Dr. David Kirkby]

On Sat, 11 Dec 2021 at 02:55, Adrien Monteleone <
adrien.monteleone at lusfiber.net> wrote:

> You can certainly create 'Other Liabilities' or 'Provisional
> Liabilities' under the main 'Liabilities' account, as you see fit.
>
> I'd create that as a placeholder-parent, and then create a separate
> account for the specific liability 'owner'. (or whatever
> description/name makes sense)
>

Thank you. There's only one of these provisions, so there's nothing
specific.


> This practice will allow you to easily move that account somewhere else
> in the tree if you need to. (as long as it is still a 'credit' account,
> that is—liability, equity, revenue—opposite accounts of asset and
> expense would be significantly more difficult to transition to)
>

Okay.

So if you weren't sure if the account should be Equity, Liability, or
> Revenue, it really doesn't matter at first, as long as you describe it
> well, and keep its transactions isolated. (don't mix other stuff in it,
> which is why it should be a child account with a descriptive parent, and
> never a 'catch-all/miscellaneous' approach)
>

That's *very *useful to know.

Regards,
> Adrien
>

Dave