- GnuCash 2.6.12
- Ubuntu 16
- $10,000 loan from external party (Brandon)
In the official GnuCash documentation, it states that:
GnuCash treats account types Credit Card and Liability the same.
Which is exactly how it should be.
However, the issue I am running into is that my loan is not being treated as a credit, it is being treated as a debit even though I've checked it is a liability. This of course throws the balance sheet off by the $10,000.
I am digging in the archives of my brain here back to high school accounting but I am fairly certain the loan charge of $10,000 offsets the $10,000 deposit into the checking account. No?
Please point me in the right direction, I am sure I am missing something minor or I just do not understand how loans (or liabilities in general) work in the balance sheet.
One final thing I should mention is that if I put the loan against the "Credit Card", it behaves as expected. I have compared the Credit Card and the Loan and cannot see a difference that would cause this.