[GNC] question from newbie

[Michael Hendry]

On 6 Nov 2021, at 21:40, Shevach Pepper <shevachp at gmail.com> wrote:
> 
>   Hello there,
>   'I'm having trouble on how to record buying groceries on Jan. 1  with a
>   head check for Feb. 1
>   What I understood from the manual that this is not an expense but a
>   liablity but I don't understand if I should make two accounts one
>   expense: grocery and one "liability: grocery" or some easier way to
>   record this.
>   Thank you very much for the help
>   Shevach
>   gif

I’m assuming a “head check” is what we in the UK would call a post-dated cheque - a cheque which can’t be cashed until a stated date; for what it’s worth, I understand that banks in the UK will often make the payment if the cheque is presented early.

I would suggest recording the expense on the date of the purchase as a transaction between your checking account and the grocery store. If you wish, you could add a note to indicate that the check can’t be presented until 1st Feb to avoid confusion when reconciling the bank account.

It’s a similar situation to making a postal payment by check - you know that the payee won’t receive it for several days and may not take it to the bank for several days after that, but you’re recording your commitment to the payee rather than the date on which the bank transfers the money to his account.

I am not an accountant, but there are those on the list who will no doubt correct me if there are problems with the way I view this!

Michael