Here is my problem: Our YP lives in a home owned by the church. We deduct rent from each of his payroll checks. I have set this up as a debit to bank account and a credit to a liability account (YP Rent W/H). The next step is where I am confused. I need to debit the liability account at the end of each month to "zero out" the liabilty account but what is my credit? If I credit bank account, then it is back to zero for this item. Don't I need to show the rent paid as an asset increase somehow?Youth Pastor Rent Deduction
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Mary Miranda
- Posts: 5
- Joined: Wed Mar 15, 2006 1:11 pm
- Location: Dexter MO
Youth Pastor Rent Deduction
Hi everyone. I am a brand new user! Here is my problem: Our YP lives in a home owned by the church. We deduct rent from each of his payroll checks. I have set this up as a debit to bank account and a credit to a liability account (YP Rent W/H). The next step is where I am confused. I need to debit the liability account at the end of each month to "zero out" the liabilty account but what is my credit? If I credit bank account, then it is back to zero for this item. Don't I need to show the rent paid as an asset increase somehow?
Here is my problem: Our YP lives in a home owned by the church. We deduct rent from each of his payroll checks. I have set this up as a debit to bank account and a credit to a liability account (YP Rent W/H). The next step is where I am confused. I need to debit the liability account at the end of each month to "zero out" the liabilty account but what is my credit? If I credit bank account, then it is back to zero for this item. Don't I need to show the rent paid as an asset increase somehow?