Just a quick pointer (which you probably will notice yourself). You have a
typo/thinko in the second transaction.
2014/10/11 Jane Doe
Liabilities:Debt:Jane Doe -10 EUR
Assets:Accounts:Checking
The sign is wrong. You need to have positive number when paying back the
Liabilities
so that your Checking account goes down ;-)
I think the topic of perspective is important for newbies (of which I count
myself). I kept getting confused about
the sign a transaction should have until I realized every time I receive
money, the account I receive the money
from has a negative transaction. Similarly, every time I pay money, the
account I pay has a positive transaction.
That way it makes sense that Liabilities will be negative when I borrow
money and positive when I pay it back.
Income will always be negative (I'm not giving my income back!!!).
Expenses will always be positive
(The shop keepers refuse to refund my money!!!). Assets will be positive
when I receive them and negative
when I spend them.
Hope that helps
On 12 October 2014 11:41, Martin Blais <[email protected]> wrote:
> Yes, this is correct.
>
> Jane's "asset" account is to be tracked by herself. From your perspective
> (the perspective of your ledger), the account is a liability. All accounts
> are to be treated from your own perspective. Jane's asset is not your asset.
>
>
>
> On Sun, Oct 12, 2014 at 3:50 AM, Roland Tepp <[email protected]> wrote:
>
>> So, I just started out with Ledger, to get my finances under control.
>>
>> As I owed some money to a friend of mine over a small favor, I filed it
>> in my initial transaction as:
>>
>> ...
>> Liabilities:Debt:Jane Doe -10 EUR
>> ...
>> Equity:Opening Balances
>>
>> So, now that I payed her back, how should I file it.
>>
>> My initial thought was tho file it like this:
>>
>> 2014/10/11 Jane Doe
>> Liabilities:Debt:Jane Doe -10 EUR
>> Assets:Accounts:Checking
>>
>> But then it really just shows my money going to cover for a debt, but not
>> going to the Jane's account (where it actually will be going)
>>
>> So, Is the above method okay, or is there some better way to express such
>> situations?
>>
>> PS - I am really new to all of this, so expect to explain this all to me
>> patiently as I was 7 years old.
>>
>> Thank you for your patience and help.
>>
>>
>> Roland.
>>
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