I only recently started to document my financial administration properly. Before, I had an Excel file with all transactions of my bank account (and a separate one for my savings account). Recently I decided to try GnuCash for my financial administration. However, I am having trouble finding the right way to deal with the following situation:
In my personal financial administration I have an expense where I paid something for myself and a friend, for instance drinks at a bar, say 50 euros. Later, that friend reimburses me for his half, 25 euros.
In my former administration framework, I would add both transactions to the same "category" (say "Bar"), resulting in a net of 25 euros of expenses for that category.
However, in double bookkeeping I feel like this is not the proper way to document these transactions. Specifically, I would like the monthly reports of my bank to match the reports GnuCash makes, as follows:
For example, my bank would say that 1025 euros were desposited (1000 salary, 25 reimbursement), and 750 withdrawn (700 monthly expenses, 50 for the drinks), while GnuCash would say 1000 euros were deposited, and 725 euros were withdrawn (assuming I add the reimbursement as an expense, in effect lowering the total amount of money on expense "Bar").
On the other hand, I would like to somehow note that the 25 euros I received from the friend were in fact reimbursement for a payment made in the "Bar" category, so that the GnuCash report says that a total of 25 euros were spent on category/expense "Bar", since that is the actual amount of money that I spent on it.
Since I am new to properly doing personal finance like this it is entirely possible that this is not how finance is done, and what I am trying to do should be documented otherwise. If so, how would such a set of two (or multiple?) transactions be documented?
Finally, excuse me if my (financial) terminology is incorrect.