User Support Forum

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?

I'm not an accountant, but maybe you could debit the liability and credit a rental income account? Actually, you may even be able to debit the bank and credit the income in the original transaction, and not include the liability at all. Double check with someone who knows more about accounting!