[GNC] Where do 'opening liabilities' go?

[Derek Atkins]

Hi,

On Sun, November 10, 2024 12:43 pm, Chris Green wrote:

> OK, that's fine, so I have an equity account with the amount owed from
> the current account to the building fund.  That amount transfers to an
> account in Liabilities.  However I'm stuck on how I add further
> amounts owing to the building fund during the year, where do they
> transfer from into the liability account?

The Equity account is (generally) only used for opening balances before
you start accounting.  Once you get going, any account opening would
necessarily have a counter/balance account.  For example, if you open a
Car Loan, the counter-account would be the Car (Asset), and possibly some
Tax & Fee Expense account(s).

So the question is, what "further amounts owing to the building fund" are
you talking about?   In this particular case, I don't really think it IS a
liability -- a liability is when someone gives you sometihng of value and
then you pay them back over time (e.g. a loan, mortgage, etc).  In the
case of regular building funds, that would most likely be an expense to
you -- or an asset if you have a way to "get it back".

In the end, of course, if you have a question you should talk to an
accountant for how to record the transactions.  IANAA, so take my input
with the appropriate grain of salt.

> Chris Green

> Please remember to CC this list on all your replies.
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-derek


-- 
       Derek Atkins                 617-623-3745
       derek at ihtfp.com             www.ihtfp.com
       Computer and Internet Security Consultant