Murray, If you operate the account normally with a positive cash balance with only an occasional excursion into the red for relatively short periods << financial year, I would think it is reasonable to record it as an asset account.
If however you intend to operate the account as a perrmanent overdraft where the account is in the red most of the time for some considerable period comparable with a financial year (e.g. after paying for renovation/refurbishment), it is operating as a variable principal loan, and it would be more appropriate to record it as a liability rather than an asset. Either approach is reasonable. If the books are for your own business, then your accountant will be able to sort out any formal reporting requirements. If there are no formal reporting requirements then that is fine. Your main concern is that any fees associated with using the overdraft facilty and any interest will possibly by tax deductible depending upon tax rules in your jurisdiction so you will need to record then as expenses. David Cousens ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
