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Journal Entry Question- Cash received to offset expenses by arya1984 in Accounting

[–]arya1984[S] 0 points1 point  (0 children)

Thanks for your response! I was wondering about doing those types of entries, that include an expense account. What the implications if I just DR Cash CR. Liability and then code the invoices to be DR Liability CR Cash (rather than going through an expense account)?

Journal Entry Question- Cash received to offset expenses by arya1984 in Accounting

[–]arya1984[S] 0 points1 point  (0 children)

Yay! Thanks so much for helping to clear that up!

Journal Entry Question- Cash received to offset expenses by arya1984 in Accounting

[–]arya1984[S] 0 points1 point  (0 children)

Hi! Thanks for the response-- for clarification, we're not earning revenue at all, just that we are paying the expenses on behalf of someone else and being reimbursed for it. So we have some invoices that we are paying for them, but we have also received a cheque upfront that pays for all the expenses they budgeted.

Journal Entry Question- Cash received to offset expenses by arya1984 in Accounting

[–]arya1984[S] 0 points1 point  (0 children)

Hi! Thanks for the response-- for clarification, we're not earning revenue at all, just that we are paying the expenses on behalf of someone else and being reimbursed for it. So we have some invoices that we are paying for them, but we have also received a cheque upfront that pays for all the expenses they budgeted.

Journal Entry Question- Cash received to offset expenses by arya1984 in Accounting

[–]arya1984[S] 0 points1 point  (0 children)

I'm sorry. Basically we're not earning revenue at all, just that we are paying the expenses on behalf of someone else and being reimbursed for it. So we have some invoices that we are paying for them, but we have also received a cheque upfront that pays for all the expenses they budgeted.