how to show credit card liability when initializing ledger

[lunatech]

Hi,

I am trying to create an initial ledger file for managing my account.
The manual says that I can show my opening balance for bank account
being credited from Equity, i.e.

'
2008/10/25 * Checking balance
Assets:HSBC:Checking Rs 1000
Equity:Opening Balances
'

My question though is about my credit card's opening balance. I have
recorded that too as being credited from the Equity. i.e., I have
something like this
'

2008/10/25 ! Hsbc Credit Card
Liabilities:HSBC:MasterCard Rs 200
Equity:Opening Balances
'

I wanted to know if this is the right way to do this?

Thanks for your help!

[Michal Wallace]

Hey there,

Your example is almost right, except that the number should be negative.

When you pay your credit card from your bank, you want to
subtract from the asset account and add to the liability account.
So the debt should be a negative number.

Also, if you want, you can put all your opening
balances in a single entry. (That's my personal
preference - it doesn't really matter)

-Michal

[Drew Raines]

lunatech wrote:

> My question though is about my credit card's opening balance. I have
> recorded that too as being credited from the Equity. i.e., I have
> something like this
> '
>
> 2008/10/25 ! Hsbc Credit Card
> Liabilities:HSBC:MasterCard Rs 200
> Equity:Opening Balances
> '
>
> I wanted to know if this is the right way to do this?

Since your credit card is a liability, you want it to be negative, so
the entry should look like:

2008/10/25 ! Hsbc Credit Card

Liabilities:HSBC:MasterCard Rs -200
Equity:Opening Balances

-Drew

[Raj Shekhar]

in infinite wisdom Drew Raines spoke thus On 10/27/2008 06:38 AM:

> Since your credit card is a liability, you want it to be negative, so
> the entry should look like:

Drew/Michal - thanks for the help. That worked.

--
raj shekhar
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