On Wed, 21 Jul 2010, Wallace Roberts Consulting wrote:
I recently acquired a credit card for my business. Normally, I use my checking account's debit card to pay for expenses. The checking account is listed in the CoA as #1060, Checking Account. I'm wondering how I should classify the credit card? Is it also a current asset like my debit card? I think of it more as a liability, since I accumulate charges against it, then pay it off each month from the checking account.
Your accountant will provide the definitive answer, but I'll share with you how I've been doing this for more than 15 years. My business credit card is a liability account. I also have an expense account for bank charges and interest payments and an expense account for 'purchases' which is generic. Purchases made with the card balance expense account with the liability account, payments balance the liability account with the checking account. Rich _______________________________________________ SQL-Ledger mailing list [email protected] http://lists.ledger123.com/mailman/listinfo/sql-ledger
