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33 votes

How to account for human error?

Does it matter? In this case you were charged $49.99. Your card record shows $49.99. Your account entries show $49.99. You really did pay $49.99 in expenses, so "expenses" should show $49.99....
DJClayworth's user avatar
  • 33.6k
16 votes

How should I record a gift card?

When you receive the $50 gift card: credit $50 to an income account, and debit $50 to an asset account (e.g. "gift cards"). i.e. increase the income account by $50, and increase the asset ...
Flux's user avatar
  • 17.1k
15 votes
Accepted

How to account for human error?

I created an Errors account that can be used to absorb the remainders of transactions. 2021-09-07 * Store Expenses $ 49.49 Credit Card $ -49.99 Errors Any remainder will be ...
Matheus Moreira's user avatar
14 votes
Accepted

Double entry bookkeeping - Record incoming money which I would hold temporarily as a custodian

The correct accounting, assuming that if 500 comes in, you're sending the whole amount to your dad would be Debit Asset/Cash/MyBankAccount for 500 Credit Liability/Payable/Dad for 500 Then when you ...
Levi Ramsey's user avatar
10 votes

Double entry bookkeeping - Record incoming money which I would hold temporarily as a custodian

If these are your personal accounts, and you consider your dad a separate financial entity - such that your owings to him are a Liability - then the cashflow isn't Income for you at all. It's ...
Andrzej Doyle's user avatar
8 votes

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

Does this mean that double entry book-keeping is practically a blockchain, with each block being a transaction? Not exactly. In double entry book-keeping, every institution keep its own accounts that ...
Dheer's user avatar
  • 57.1k
8 votes

Question about double-entry accounting

I wonder if you're confusing "account" as meaning a bank account. An account, in accounting terms, is merely a ledger or list of transactions. Say that you receive some cash. Where did that cash come ...
Luck's user avatar
  • 243
8 votes
Accepted

What accounting entries should I make for writing off a personal loan?

You'd debit "Bad Debt Expense" or comparably named expense account. Edit: I like glglgl's idea of the same account as gifts to keep number of accounts low, it's really just a matter of ...
Hart CO's user avatar
  • 70.5k
7 votes

What would be the appropriate account for written off loans to friends and family?

A simple way to account debt forgiveness of your receivables is to utilize a "Bad Debt" expense account. Take the following two examples: You loan $500 to Aaron with no interest accrued ...
William Breathitt Gray's user avatar
7 votes
Accepted

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

Per IRS Private Letter Ruling 141607-09 : "The portion of the credit card purchases that Taxpayers can either receive back in cash or request Company to pay to a charity does not constitute gross ...
A.K.'s user avatar
  • 328
7 votes
Accepted

How to balance out trading between different currencies and dividends on a ledger?

To do proper double-entry bookkeeping when multiple currencies or securities are involved, you can use what GnuCash calls trading accounts. They are described in detail in a tutorial by Peter Selinger....
Jérémie Koenig's user avatar
6 votes

Keeping track of birthday money with double-entry accounting

Don't try some complex system of double entry-accounting. Just open bank accounts in their name. The money that they get from relatives can start earning interest. Yes I know that interest rates are ...
mhoran_psprep's user avatar
5 votes

Double-entry accounting: how to keep track of mortgage installments as expenses?

Because a paying down a liability and thus gaining asset equity is not technically an expense, GnuCash will not include it in any expense reports. However, you can abuse the system a bit to do what ...
tristano's user avatar
5 votes

How do I do double-entry bookkeeping for separately-managed investment accounts?

For any accounts where you have a wish to keep track of dividends, gains and losses, etc., you will have to set up a an account to hold the separately listed securities. It looks like you already ...
OneTruDragonGirl's user avatar
5 votes
Accepted

Setup Rental Security Deposit account in GnuCash

It's still an asset because you're keeping it on your books in an interest bearing account. And it's still also a liability because as you note, the money is not technically yours and you owe it to ...
Andy's user avatar
  • 1,448
5 votes
Accepted

How to record currency exchange in double entry

In GNUCash, enable Trading Accounts. Then you will see unrealized gains in the Balance Sheet. https://www.gnucash.org/docs/v2.6/C/gnucash-guide/currency_concepts1.html A set of books can only ...
base64's user avatar
  • 10.5k
5 votes
Accepted

Should tax refunds be debited from expense or income accounts?

For personal accounting there are no regulations, so do whatever suits you. Arguably, on a cash basis a credit to an expense account makes the most sense. Treat it as you would had you bought an item ...
Phil Frost's user avatar
  • 3,131
5 votes
Accepted

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

One thing I need to separate out and track a little better is planned / budgeted expenses (where I've budgeted some funds for household projects, such as renovations). Double Entry Book Keeping has ...
sevensevens's user avatar
  • 4,099
5 votes
Accepted

How to interpret equity

The equation you are using is a bit misleading and incomplete. It is combining point-in-time measures (Assets, Liabilities, Equity) with period measures (revenue, expenses) A better equation would be: ...
D Stanley's user avatar
  • 137k
5 votes
Accepted

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

The answer can actually be found in the documentation, you just have to look closer. Virtual Postings will do it. The parenthesis around the automatic transaction means that you aren't representing ...
Wayne Werner's user avatar
  • 1,159
5 votes

How should I record a gift card?

EDIT: The second part of Flux's answer definitely addresses the main point in your question, which I somehow missed. A simple way to think about it is that if you are going to spend the $50 gift card ...
Jivan Pal's user avatar
  • 363
5 votes

What accounting entries should I make for writing off a personal loan?

You use the same expense account you would use for a gift.
glglgl's user avatar
  • 5,415
4 votes

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

If the cashback is true cash back, in other words either paid into a bank account or used to reduce your balance, then in terms of bookkeeping, it is and can be treated as income. In that sense, it ...
user's user avatar
  • 4,609
4 votes

Accounting equation: does income really decrease equity?

The accounting equation, in short, is: ASSETS = LIABILITIES + EQUITY This can be further broken down into: ASSETS = LIABILITIES + PAID-IN CAPITAL + RETAINED EARNINGS (Equity is made up of ...
Jacob's user avatar
  • 212
4 votes

Including benefits in kind within accounts

Check your local laws, but here's something I googled up: Australian Accounting Standard AAS 29 Financial Reporting by Government Departments requires contributions of services to be recognised ...
Lawrence's user avatar
  • 9,362

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