I see now. Thanks for the answer!

On Wed, 30 Aug 2023, 03:12 Martin Michlmayr, <[email protected]> wrote:

> * Lazar Slavkovic-Raco <[email protected]> [2023-08-29 12:51]:
> > I am new to the plain-text accounting and after some buildup of the
> > transactions I stumbled on the problem of adding new account for
> > Liabilities. When I am creating new transaction where I created new
> > Liability, to which counter account should be tied to? My first
> > initial thoughts of this would be to my assets but I want to hear
> > from you.
>
> Initially, it would typically be an expense; assets is only involved
> when you eventually pay off the liability.
>
> For example: you buy some stuff (e.g. computer, raw materials, etc)
> but can pay 30 days later.  You now have:
>
>  - And expense.  But you didn't pay with cash (an asset) but instead
>    you owe the amount (a liability)
>  - Later you pay the debt (liability) with cash or bank transfer (assets)
>
> In ledger:
>
> 2022-08-30 * Buy stuff
>     Expenses:Stuff                   1000.00 USD
>     Liability:Payable               -1000.00 USD
>
> 2022-09-30 * Pay for stuff
>     Liability:Payable                1000.00 USD
>     Assets:Bank                     -1000.00 USD
>
> Now there's no Liability:Payable anymore, your bank account is lower
> and your expenses higher.
>
> (Obviously Expenses:Stuff is a really bad account name; for example
> Expenses:Electronics might be good if you buy a computer).
>
> --
> Martin Michlmayr
> https://www.cyrius.com/
>
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