On 2/7/21 1:36 AM, Petros Tenezakis wrote:
How do set up initital balance for a loan. I owe for an example 10000 USD to
Example Bank
I find it best to break actions like this into the different components.
1. First item is to realize this will result in you having a
liability. This means you will need to setup an account in the
liability section of your Chart of Accounts (COA).
If you have other liabilities (loans) with this same bank, you
should make each one a sub-account under a placeholder account for the
bank. That way yo u know at a glance the total outstanding amount you
owe this bank.
2. Next, the initial transaction will set the opening balance and also
track where that money went. Perhaps it was deposited directly into you
checking account (an asset) or it went to purchase a house (also an
asset with some expenses for the closing costs) or was used to pay off
credit-cards or other short/long-term loans (liabilities). The main
item to remember is that the liability will be the credit side of the
transactions with the other splits being the debit side. This means
that an increase to an asset goes on the debit side of that account as
also an increase to expense.
3. Finally, be sure you have the correct date on this transaction that
all of the debits add up to the $10,000 credit .
4. Now you can setup a schedule payment plan to pay off this debit.
You can even add a transaction to the scheduler so that the payment
transaction will show up in the proper accounts each month.
--
Stephen M Butler, PMP, PSM
stephen.m.butle...@gmail.com
kg...@arrl.net
253-350-0166
-------------------------------------------
GnuPG Fingerprint: 8A25 9726 D439 758D D846 E5D4 282A 5477 0385 81D8
_______________________________________________
gnucash-user mailing list
gnucash-user@gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see
https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
