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Confused about Paying off my Creditcard

Hi,


I am confused about double accounting and credit cards.  Example


Account A has a balance of £10

Account B a Credit Card is £0


Total Balance = 10

Expense = 0

Income = 10


I buy a jacket that costs £10 on my credit card.  We get

Total Balance = 0

Expense = 10

Income = 10


If I pay off my credit card I get

Account A has a balance of £0

Account B a Credit Card is £0


Total Balance = 0

Expense = 20 (Payment to the Credit card and Jacket)

Income = 10 (Starting income Bal of £10, Credit Card income of £10)


I am utterly confused with this.....It looks like I've spent more than I have?  am I right that when you pay off your credit card it should be a TRANSFER, to prevent double accounting?


Hello Michael,

Yes, paying off a credit card should be done via a Transfer transaction but it is an expense and and income from an account's perspective. For that particular account, that's either an expense or income.

Can you please tell me exactly which report/section of MoneyWiz you are referring to so I can see what you are looking at?

 

Because you've also e-mailed us, I'll close this topic and we'll continue the conversation via e-mail.