Managing Credit cards

If it is a real credit card you have to create it as an account of type 'Liabilities'. Let's see an example. Let's say you purchase some stuff with your card for $500.00. This card has been created with a starting balance of $0.00 and of type 'Liabilities'. This is the transaction:

Date	Origin Account	Target account	Amount
08/31/2003	My credit card	My stuff	500.00

After this transaction 'My credit card' has a new balance of -$500.00

Then let's say payment is made monthly like a loan with a 5% interest for a period of 12 months. The monthly transactions will look like this:

Date	Origin Account	Target account	Amount
08/31/2003	My checking account	My credit card	40.70
08/31/2003	My checking account	Financial expenses	2.13

'My credit card' balance becomes -500 + 40.70 = -$459.30
'Financial expenses' is an expense account we have created to compute interests.

And next month:

Date	Origin Account	Target account	Amount
09/31/2003	My checking account	My credit card	40.87
09/31/2003	My checking account	Financial expenses	1.96

Date	Origin Account	Target account	Amount
08/31/2003	My checking account	My credit card	500.00

You simply credit 'My credit card' and debit 'My checking account' for $500.00