Questions tagged [double-entry]

Double-entry is an accounting technique in which every event is recorded in two separate accounts. The event is recorded in one account as a credit, and in the other account as a debit.

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How do I record Purchased Annual Leave?

My employer has an arrangement where one can "purchase" annual leave. This works by giving you say 40 hours of additional annual leave to take whenever you like, and then over the course of ...
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7 votes
2 answers
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Double entry bookkeeping - Record incoming money which I would hold temporarily as a custodian

My dad's clients often transfer payments, which they owe to my dad, into my bank account [for technical reasons, some payment types into my account are not currently available in my dad's]. After a ...
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5 votes
1 answer
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How to balance out trading between different currencies and dividends on a ledger?

TL;DR: I'm wondering how should I balance out values when dealing with multiple currencies being traded over time along with normal expenses that might occur along the way, as well as transactions ...
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2 votes
0 answers
79 views

Double-entry accounting example for Christmas gift from family member

A family member, Sandra, pays $10 as a Christmas gift for Joe's daughter, Anne. Joe is learning accounting and records the entry as follows. Joe wants to check if the following entries are correct or ...
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15 votes
3 answers
5k views

How to account for human error?

Sometimes people make mistakes. The checkout process at stores often involves manual data entry which is error prone. For example, as a customer I could be charged $49.99 for a product priced $49.49. ...
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2 votes
2 answers
150 views

Am I correctly categorizing things wr/t the rules of double entry accounting?

I'm trying to bring some organization to my personal finances. I'm looking at tools like GnuCash, but I'd like to really understand how they work, and after reading bits and pieces about double entry ...
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3 votes
4 answers
183 views

Setting up and tracking internal funds in a double-entry system for personal finances

I am trying to properly set up some internal funds in a double-entry context for personal finances. For example, I have a Home Improvement fund to which some variable amount of money may be added ...
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1 vote
1 answer
73 views

How to accommodate for bills payed on my behalf in book keeping

I track my expenses and assets using an android application. It allows for a system similar to double entry bookkeeping. Where a recorded transaction make appropriate changes in two accounts. (an ...
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1 vote
0 answers
81 views

Can a transaction in double entry bookkeeping have an odd number of entries? [closed]

I'm a software developer, and I'm writing a bookkeeping app for my personal finances and freelance work. It's working pretty well, but one point about double entry bookkeeping confuses me. The ...
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2 votes
2 answers
113 views

How to track money used for shared expenses against a personal loan?

I've recently (3 months ago as of writing this) got into proper double entry bookkeeping for my personal finances. I've been using GnuCash, though this pertains more to double entry practices than ...
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-1 votes
1 answer
66 views

Double entry accounting - asset account [closed]

I understand a loan account of a customer is an asset account of the bank. A credit to loan account by bank decreases asset account. According to double entry accounting for every credit there should ...
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2 votes
1 answer
136 views

How to enter a tax credit/deduction/exemption in double entry system?

I started using GnuCash and have learned the basics of double entry bookkeeping for managing rental income. I have managed to create a working Chart of Accounts that works well and accurately (...
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1 vote
1 answer
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At the end of a reporting period, how do I record increased/decreased share values?

How do I record changes in the values of shares that I hold at the close of a reporting period in double-entry accounting? I.e., what transactions are made? I am interested in any standard or typical ...
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1 vote
0 answers
51 views

Accounting for dividends of stocks held for 3rd party

Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I ...
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2 votes
1 answer
100 views

How should I record a previously unrecognized asset?

I use double-entry accounting (with ledger-cli) for my personal finances. I recently found out that I had $40 stashed in one of my drawers, and I don't know when exactly I acquired them, or where I ...
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57 views

How should I record a reimbursement for college tuition?

My dad just gave me $4200 to pay for the college semester, and he expects nothing in return. I would like to correctly record this using double-entry bookkeeping. Normally, I would just pay for ...
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8 votes
2 answers
3k views

How should I record a gift card?

I have received a $50 gift card for my birthday, and I've been thinking on how I should record it in my books, using double-entry accounting. I don't think it would make sense to classify as an ...
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1 vote
0 answers
98 views

What account should be debited using double entry accounting for a stock spinoff transaction

I use ledger for tracking my personal finances. I'm trying to record a transaction where a stock I owned spun off shares of another company. (The specific case I'm referring to is when BioTime spun ...
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0 votes
4 answers
255 views

Modelling bank account transfers with double entry accounting

I'm building a relational database to model double entry accounting. Right now it's such that any attempt to enter an unbalanced transaction (where dr != cr) will be rejected; with this restriction, I'...
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0 votes
1 answer
268 views

GNUCash: Reimbursements from Friends

I just started using GNUCash to track my finances, and I have two hypothetical examples I'm not sure how to log. Example 1 On Sunday, I made a 100$ purchase. Since I didn't have a credit card on hand,...
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0 votes
1 answer
92 views

How to track children's accounts as my own in double-entry accounting?

I track my finances in GnuCash which is a double-entry accounting system. My children each have a savings account. I want to keep track of the children's savings accounts in GnuCash by pretending ...
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0 votes
1 answer
102 views

Double entry process to record 401k change in value

My Roth 401(k) statement shows the following fields: Payroll Contributions (including employer match) Change in Value Dividends Expenses In double-entry accounting, is the "Change in Value" income ...
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0 votes
2 answers
288 views

Keeping track of birthday money with double-entry accounting

I'm trying to figure out how to keep track of my kids' birthday money in a double-entry accounting system (GnuCash). Currently I am keeping track of the amounts as sub-accounts of my checking account ...
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2 votes
2 answers
341 views

Double entry process for 401k account exchange

I'm entering journal entries for hledger for a 401k account and have questions about how it should work when an account goes through an exchange (I'm not sure what it is exactly; I guess the finance ...
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1 vote
1 answer
91 views

Including benefits in kind within accounts

I'm producing accounts for a local political party using GNU Cash. There are a lot of benefits in kind that we need to account for. Previously I included these on a separate spreadsheet, but would ...
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-1 votes
1 answer
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Journal entries for payment of tuition fees [closed]

A student has total tuition fee of 8,000. The student paid 3,000 as a down payment and the journal entry is: Cash 3,000 AR 5,000 Tuition Fee 8,000 But what if the student will pay 3,500 for ...
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1 vote
1 answer
260 views

What's the double-entry bookkeeping method for tracking a Safe-to-Spend balance and amounts saved towards goals and expenses?

The bank Simple has three great features: Safe-to-Spend Goals Expenses The Safe-to-Spend balance is pretty simple: it's just the balance in your checking account minus the total amount set aside for ...
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1 vote
4 answers
424 views

Question about double-entry accounting [closed]

Here's a typical statement on the subject from this SO post: The logic, for those not familiar with accounting, is: money is not created nor destroyed, it is only transferred from account to another. ...
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4 votes
2 answers
860 views

How do I use a liability account (in ledger-cli)?

I don't think this is only applicable to the software, but it's the one that I'm using. In the documentation it talks about using charitable giving (e.g. tithing) as a Liability. An example for 10% ...
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2 votes
4 answers
502 views

double entry bookkeeping loan to myself

I have 3 accounts - savings, outgoing, and loan. I have $100 in savings. I then receive $50 into savings. so far, so good. Then I want to 'borrow' $25 from savings with the intention of paying it ...
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1 vote
1 answer
246 views

How to interpret equity

I understand Equity to be "Net Worth", as calculated by Assets - Liabilities. I also understand the "Expanded Fundamental Accounting Equation" to be Assets + Expenses = Liabilities + Equity + Income ...
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1 vote
1 answer
199 views

Tracking GST/VAT from invoice to payment

Contrived example: Alice and Bob both work for Charlie, who runs a lawnmowing service. Charlie bills $100 plus 10% GST/VAT for the job. If Alice does the job, she gets $50 - if Bob does the job, he ...
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3 votes
1 answer
282 views

Accounting for monthly vested stock options as compenstation in GnuCash

I am working for a company that has recently gone public. Now I see a monthly accumulation of options vesting every month. I would like to account for these options as compensation in my accounts. ...
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1 vote
1 answer
120 views

How to account for transferring money from a USD account to a GBP account?

I am using ZipBooks online software for my bookkeeping, however I do not know how to approach the following situation. I have 2 bank accounts; one in USD, the other in GBP, and I am transferring $...
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1 vote
3 answers
458 views

In double-entry book keeping, how should I track planned expenses

So, I'm working on getting a bit better at managing my household finances and am currently working to learn double-entry bookkeeping. One thing I need to separate out and track a little better is ...
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6 votes
1 answer
354 views

Accrual accounting: how to implement prepaid tax

I am trying to put my personal finances in order and I figured that accrual accounting fits my needs for keeping a better track of my records. I am new to accrual accounting and while I think that I ...
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6 votes
2 answers
959 views

How to enter credit card "statement credits" (e.g. cash back) in double entry accounting? [duplicate]

A credit card statement credit is a reduction in liability, so I would think it's "income" of a sort. But, I could also see it as a reduction in expense; for example, buying a plane ticket using a ...
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2 votes
1 answer
148 views

Do GnuCash Income entries ever stop contributing to the Income Account's total?

I'm building a personal budget in GnuCash and after entering my starting equity, I've added my new paycheck in the Income section of my budget. I've entered it as transferred to my Checking Account ...
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1 vote
2 answers
413 views

How to track multiple savings in a single bank account with double-entry accounting

I have multiple savings that I want to track, eg - new car, vacation, etc. I'm storing all the money for those in a single bank account. I'm not sure how to track this via double-entry bookkeeping. ...
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3 votes
1 answer
156 views

Should ledger entries reflect actual bank charges, orders, or totals?

I recently purchased a few things on Amazon, but they split the items into multiple charges and orders: Order 1: $40, 2 items Order 2: $50, 1 item Order 3: $250, 5 items Charge 1: $40, Order 1 ...
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2 votes
5 answers
5k views

Should tax refunds be debited from expense or income accounts?

I've been using Ledger to keep track of my finances. A typical income entry looks like this: 2018-01-05 * My Company Assets:Cash:Checking 1,000 USD Expenses:Taxes:Federal:...
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4 votes
4 answers
2k views

Is the blockchain similar to double-entry book-keeping?

As far as I know, blockchains keeps transaction records from the beginning of time. This lets the blockchain retain a history of traceable transactions so it can maintain validity. Double-entry book-...
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3 votes
1 answer
143 views

How to get visibility into contributions to assets

I'm using double entry with Assets, Expenses, Income, Liabilities, and Equity. To illustrate my question with easy round numbers: Income one month is 10k; 5k goes into an asset like a 401k account (...
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3 votes
1 answer
2k views

How to account for digital currencies in a double ledger book

I put my personal finance records in GnuCash and I would like to understand how to best account for digital currency transactions. My book is for tracking EUR transactions. Scenario 1: I hold 1 BTC ...
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2 votes
1 answer
854 views

How to manage shared expenses with double entry

I am struggling to find a good answer but I didn't.(spent over 40 hours thinking it). I know that there is a similar question here Link but it doesn't solve my problem. How would you manage shared ...
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0 votes
1 answer
998 views

How do you set up current year bookkeeping based on previous year balance sheet and profit and loss items?

I'm setting up this year's accounting ledger for a sole proprietorship. It used to be done by CPAs in the past but I decided it's time to bite the bullet and start doing it myself. All is going well,...
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1 vote
3 answers
967 views

Double-entry bookkeeping: When selling an asset, does the money come from, Equity or Income?

I use a double-entry system (ledger) to manage my personal finances. I have set it up so that the only entries in my Equity are my opening balances. If I sell an asset (e.g. laptop) whose value I ...
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3 votes
1 answer
835 views

Setup Rental Security Deposit account in GnuCash

I'm new to GNUCash and creating a new GNUCash file to track my rental. I have a security deposit account with my bank, and am trying to make sure I get this all setup correctly. In quicken, I had an ...
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10 votes
3 answers
9k views

How to handle cash back or rewards in Gnucash, what account

One of my credit cards gives me a cash back reward that I have credited to my account when it build up to a large enough amount. What account should I use for it, or is there a specific way to handle ...
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3 votes
1 answer
2k views

How to record currency exchange in double entry

I decided to make my own double entry accounting program that deals with multicurrency. However, I am facing an issue in dealing with following scenario: I have two bank accounts: From: Opening ...
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