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If I put $200 of groceries on my credit card for a friend while I'm out shopping, how do I record that transaction? Further, when she pays me back by bank transfer, how do I record that transaction to distinguish it from income? I'm using GnuCash.

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If I put $200 of groceries on my credit card for a friend while I'm out shopping, how do I record that transaction

Debit Current Asset:Debtor/Receivable:Friend

Credit Current Liability:Credit Card

how do I record that transaction, and when she pays me back by bank transfer

Debit Current Asset:Bank

Credit Current Asset:Debtor/Receivable:Friend

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  • Perfect, thank you! I'm still wrapping my head around double-entry bookkeeping. – Helmanfrow Nov 10 '20 at 2:54
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    This is the correct answer- you are not buying groceries, you are loaning your friend $200. From your household finances perspective, it doesn't matter that your friend immediately turns around and buys groceries with borrowed money. They could burn the cash, it would still be a "Loan to friend" from the perspective of your accounts. – Derek_6424246 Nov 10 '20 at 17:05

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