Question for my dearest #accounting and double-entry #bookkeeping nerds:
I want to explicitly track some of my money for periodic subscriptions, e.g. paying for RuneScape membership every six months:
> Expenses:RuneScape EUR 47.99
> Assets:Bank:Liquid EUR -47.99
My idea is to move a sixth of that amount to a savings account every month like this:
> Assets:Bank:Saved:RuneScape EUR 8
> Assets:Bank:Liquid EUR -8
This is fine, but it doesn't track the liability that I have with Jagex to pay the subscription every six months. In my mental model, I should be able to track the cost of the future subscription payment as a liability because it affects my working capital, so I should record the liability with something like this:
> Liabilities:RuneScape EUR -47.99
> ???:??? EUR 47.99
However, I don't know which kind of account I should debit the liability to! Where should this money come from? Debiting equity doesn't feel right and my subscription is not an asset either. My idea is that when I finally pay the subscription, I'll credit the liabilities account with my saved cash:
> Liabilities:RuneScape EUR -47.99
> Assets:Bank:Saved:RuneScape EUR -47.99
But then I'll have to record the liability again for the next period.
I feel like my mental model for this is wrong. Any #help on how I can make this work? Thank you :blobcatheart:
