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ENTERING CREDIT CARD PAYMENTS AS TRANSACTIONS
Any payments recorded in the CREDIT CARDS & LOANS worksheet must, of course, also be recorded
in the TRANSACTIONS worksheet in order to maintain an accurate balance of the chequing account, as
well as to update the available funds in the EXPENSE CATEGORIES.
In the example below, the $76.74 invoice received from Sears is paid on Feb 16 and, because the credit
card was used to purchase a parka, the DEBIT is applied to the CLOTHING category. This category is
now left with a negative balance of -$14.60.
An alternate, and more accurate, way of recording this transaction would be to apply the original cost of
the parka, $59.95, as a DEBIT in the CLOTHING category, and then record the interest charge of
$16.79, separately, to the MISC. EXPENSE category. In this example the CLOTHING expense category
would now have a positive balance of $2.19.