Accounting question about sportsbooks

[cleaveland]

When you win a bet what would the journal entry be for the book?

I was thinking that each bettor would have an accounts payable account but if you win a bet and the book credits your accounts payable account then what account gets debited? It can't be cash because a debit to cash increases it obviously.

How does this work?

[Robust]

mmm.. forgot alot of my accounting, but here is what i see..

deposit = debit
win = credit
withdrawl = debit

i could be totally off though..

Robust

i can tell you the liabilities, though.. lol (all of 'em)

[cleaveland]

mmm.. forgot alot of my accounting, but here is what i see..

deposit = debit
win = credit
withdrawl = debit

i could be totally off though..

Robust

i can tell you the liabilities, though.. lol (all of 'em)

Thanks but I'm asking for the journal entry which means we need to know the specific accounts involved and which account gets debited/credited.

[Robust]

ahh well.. don't remember them all.. and as an accountant, you don't need to use them all (from what i remember)..

deposit is a liability, but acc rec i think..
win = credit the acc receiv, no????
withdrawl = acc payable

shit.. i forget.. and my acc book is in the garage..

Robust

[cleaveland]

ahh well.. don't remember them all.. and as an accountant, you don't need to use them all (from what i remember)..

deposit is a liability, but acc rec i think..
win = credit the acc receiv, no????
withdrawl = acc payable

shit.. i forget.. and my acc book is in the garage..

Robust

In my opinion:

deposit is a liability, credit accounts payable
win = credit accounts payable
withdrawl = debit accounts payable

That explains what may happen to liabilities but what happens to assets in these transactions?

[SportsMushroom]

well my guess is when you deposit they debit cash and credit your account, you are now a creditor.

when you win they credit your account and debit a deferred liability account, and when you lose the debit your account and credit a deferred income account

the deferred income or liability is recognized as such on the balance sheet

and I will assume that when you lose your balance they recognize the deferred income in the income statement and if you withdraw they recognize it as a loss in the income statement and obviously remove it from the balance sheet

[cleaveland]

well my guess is when you deposit they debit cash and credit your account, you are now a creditor.

when you win they credit your account and debit a deferred liability account

Thanks! A couple of questions about these two sentences:

When you say they "credit your account" you mean they credit your accounts payable account?

When you say "when you win they credit your account and debit a deferred liability account" I'm confused because I think it means they're increasing your account which is a liability and decreasing a deferred liability account which is also a liability account. When you win shouldn't both your account (which I'm assuming is a liability account) and the deferred liability account both be increased?