tag:infinitekind.tenderapp.com,2009-01-14:/discussions/problems/463-contra-accountsInfinite Kind: Discussion 2018-10-18T13:54:34Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/6776572009-12-12T04:00:55Z2009-12-12T04:00:55Zcontra accounts<div><p>The answer is yes. Although, the category you use for home
improvements would be an income type if it were to be considered
"contra". I would just make it an expense and its balance would
increase as purchases were made, via checking or credit card or
cash (if you have a cash account).</p>
<p>Depending on what tracking you are looking for, you could also
make a bank type "child" account of your checking called "home
improvement funds" to keep its amount separate and pay your credit
card (at least partially) from it or even use the MD "budget"
function.</p>
<p>Keep in mind however "category" accounts zero out when you
"close" your books (if you do); in MD you archive to close. For
this reason, I personally use an asset type account to track home
improvements which I want to increase my home's cost basis; assets
do not zero at close. I put improvements that are not considered
cost basis increasers in a "maintenance and repairs" category. I
find this works well with the MD budget function too.</p>
<p>Default category is simply what is auto-entered in a transaction
for which there has not been a previous one to use as a template.
As you enter a new transaction, MD will auto-enter the transaction
fields of a previous transaction where the description matches. The
default is handy for accounts that have many transactions of the
same category, like "interest income" for a CD.</p>
<p>Hope this helps.</p></div>avp2