Home Products Downloads News Store Support Forums

iCash - Personal Finance | Frequently Asked Questions

iCash - Personal Finance

Frequently Asked Questions

Compatible with MS Windows Compatible with MacOS


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

'My credit card' balance becomes -459.30 + 40.87 = -$418.43

and so on until last month when 'My credit card' will have again a balance of $0.00, 'My Checking Account' will have been debited for $500.00 and 'Financial expenses' account will have a balance of $13.96. Note that the calculation has been made with our Loan Calculator (Loan Calc)

Of course if payment is made in one only transaction with no interest, the transaction will be far much simple:

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


 !  WAIT! In order to add a comment below just use your Facebook, Google+, Twitter or Disqus login data.


Home Products Downloads News Store Support Forums