tony coyle
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6 votes
Good point.
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8 votes
An error occurred while saving the comment tony coyle commentedRent is a liability. You might have an excess balance in that liability account (if it is currently overpaid), but from an accounting perspective it is still a liability...
If you have transactions with friends, then your friends should be represented by liability &/or asset subaccounts.
If you jointly have 'cash' positions, then treat all of the friend accounts as subordinate cash accounts... and simply transfer to/from as appropriate. Their net cash position (positive or negative) will be clear.
Similarly, you can treat friends as subordinate liability accounts...
This is all from YOUR perspective. -
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indeed it is a heresy, but not because of dogma... but because of training.
EVERY accountant in the world understands what these terms mean in the context of the account class (asset, equity, expense, income, and liability). Changing that would be less useful than for you to simply learn the terminology needed to properly use the software.