Credit Card Payoff

[Qbookslave]

J.E. for payoff of credit card principle in cash. No effect on bank account. Not income.

 

[kirby]

Yes, many people do believe they can use their credit card endlessly and never have to pay it in cash.

Unfortunately, the credit card company does not share this belief.

 

[The Finance Writer]

Clearly a debit is required to remove the credit card payable liability. The offsetting credit is to wherever the cash is from -- for example a capital infusion by the proprietor or loans from shareholder for an incorporated entity.

 

[Qbookslave]

I think I'll take it out of the Drawing account.

 

[The Finance Writer]

A credit to the drawing account doesn't seem correct. All entries to that account should be debits.