[GNC] Buying with PayPal - how do I split the transaction?

[Michael or Penny Novack]

On 12/9/2022 7:01 PM, David Cousens wrote:
>
> I treat my Paypal account as a Liability account, just as you would treat
> purchases with a credit card. Mine is linked to a bank account from which funds
> are automatically transferred to keep the balance in the PayPal account at 0. (
> I no longer accept payments through it and only use it for purchases). I also
> don't use the business features anymore.

OK, while you HAVE a "Paypal Account" it appears that in this case 
Paypal is being used just as an agent << not unlike when I purchase 
something online  paying with a credit card and the vendor is using 
Paypal as the agent >>

So your transaction could simply be debit the expense and credit the 
bank account.

However, I do NOT understand why you were treating your Paypal account 
as a liability. AFAIK, Paypal does not offer credit. Look, people can 
make on-line purchases with a credit card but also often with a debit 
card. The former is a liability account, the latter is not. This sort of 
thing is not "by company". This we would think of VISA as a credit card 
(what they do) BUT they also issue debit cards << often given as gifts 
 >> When you pay using a VISA credit card you are incurring  liability 
but when paying with a VISA debit card (a gift card) you are paying with 
an asset.


Michael D Novack