On 5/31/2017 4:13 PM, Martijn Heuts wrote:
Good afternoon and thank you for your answer.So I understand now that the cash flow
report and P&L can be different and you explained why.
I owe a business loan to the previous owner (owner financed). I made a payment to
her and I was thinking this should be an expense? So right now it does show in the
cash flow report but not in the P&L report.
This is how I build up GNU cash:March: Business Purchase: Loan (stock purchase)
$xxxx (in EQUITY)April: Payment 1- business loan $xxx (comes off in
Assets: Checking account)
Did I make a mistake in the way I build GNU or is a business loan not an
expense?Thanks for clearing this up.
Martijn Heuts
No, it is not an expense. You assumed this liability to pay an expense.
THAT transaction was a debit to a expense account and a credit to a
liability account. Later you paid off this loan and that transaction was
a debit to the liability account and a credit to cash << no expense
account involved >>
Did these two transactions took place in different accounting periods
(date ranges of the reports) ?
In any case, how to do accounting using gnucash (as opposed to using a
different package or even old fashioned pen and ink on paper or slightly
newer spreadsheets with columns just like accounting paper) is NOT the
same as "how to do accounting". You really do need to go through an
"accounting 101" sort of text.
Michael
_______________________________________________
gnucash-user mailing list
[email protected]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
