On Sat, Oct 18, 2014 at 6:48 AM, o1bigtenor <[email protected]> wrote:

> Greetings
>
> On Sat, Oct 18, 2014 at 4:53 AM, Roland Tepp <[email protected]> wrote:
> snip
>
>> I do have a credit card from my bank with a predefined credit amount on
>> it. When I pull out money from the credit card, I decrease the amount of
>> credit available and increase my liabilities.
>>
>> When I pay back more than I owe on this account, then I have just
>> increased my credit by that amount.
>>
>> I have it set up as a liability account, but that does not show me how
>> much credit I have on the card.
>>
>> What is the proper way of representing such accounts so that I could see
>> how much I owe but also be able to see, how much credit do I have?
>>
>
> When your balance in the liability account is negative you have credit
> available.
> (This is one of the joys of double entry accounting IMO.)
>

No, this is simply incorrect, you are confused.

A Liabilities account in the Ledgerverse is habitually negative, but this
does not imply that there is no credit remaining. If the balance of the
account is -700 USD and the owner has a credit limit of 2000$ on his/her
card, the amount of remaining credit available is 2000 - 700 = 1300 USD.






>
> Dee
>
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