The simplest way is to just consider the purchase price to be $95,000,
not $100,000.
(If you really want to capture the seller credit, you "could" record
the purchase price at $100k, and create another "split" in the
transaction, $5,000 credit to a new account, for instance,
"Income:credit for repairs.")
Chris
__________________________________________________________________
From: [1]gnucash-user-requ...@gnucash.org
Sent: Saturday, May 7, 2022, 11:00 AM
To: [2]gnucash-user@gnucash.org
Subject: gnucash-user Digest, Vol 230, Issue 18
------------------------------
Message: 11
Date: Sat, 7 May 2022 11:00:05 -0400
From: M [3]<m_st...@hotmail.com>
To: [4]gnucash-user@gnucash.org
Subject: [GNC] Account for Seller Credit when purchasing a home
Message-ID:
[5]<mw4pr04mb7460d540d47f5148454840c290...@mw4pr04mb7460.namprd04.prod.o
utlook.com>
Content-Type: text/plain; charset=UTF-8; format=flowed
I am still learning double-entry accounting, and I need a little help.
I recently purchased a home, but the price was reduced during
negotiation and a seller credit was applied at closing.
Agreed Purchase Price: $100,000
Seller Credit for Repairs: $5,000
Actual Purchase Price: $95,000
When I add this asset, I am stumped.? When I increase the asset by
$100,000 and decrease other accounts for cash and loans of $95,000, that
all makes sense.? But how do I account for the $5,000?? I see it as an
unrealized gain... instant equity provided by the seller. But I need to
debit an account with this amount, so it shows an unrealized gain of
-$5,000.
Should I simply just increase the asset by $95,000 and not account for
the credit?
I know I am missing the big picture.? Can anyone point me in the right
direction?
Thanks to all,
Mike
References
1. mailto:gnucash-user-requ...@gnucash.org
2. mailto:gnucash-user@gnucash.org
3. mailto:m_st...@hotmail.com
4. mailto:gnucash-user@gnucash.org
5.
mailto:mw4pr04mb7460d540d47f5148454840c290...@mw4pr04mb7460.namprd04.prod.outlook.com
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