I would enter this Murugan suggested. Let's say the balance of the CD prior to closing on your books was $300,000.00 Using the amounts you have given: Debit Credit Asset: Acct moved to $298,633.38 (Closing Balance) Income: CD Interest $162.89 Exp: Bank: Penalties $1529.51 Asset: CD $300,000.00 (Balance just prior to this entry)
Thank You, Gyle McCollam Gyle McCollam gmccol...@live.com<mailto:gmccol...@gyleshomes.com> email ________________________________ From: gnucash-user <gnucash-user-bounces+gylemc=gmail....@gnucash.org> on behalf of Murugan Muruganandam <m.muruganan...@hotmail.com> Sent: Sunday, January 15, 2023 11:17 AM To: Stephen <rilesthemtobeli...@gmail.com>; gnucash-user@gnucash.org <gnucash-user@gnucash.org> Subject: Re: [GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry hi Stephen The entries can be input as follows. I could not understand where you are getting orphans or imbalances if you can explain it would be easy Account Dr Cr Notes Principal Asst: Bank Account Asst: CD Account $ Principal amount Interest Asst: Bank Account Income: CD Interest Interest earned + partial month $162.89 Penalty Interest Exp: Bank: Penalties Income: CD Interest Total penalty $1.529,51 Saludos Cordiales Murugan ________________________________ From: gnucash-user <gnucash-user-bounces+m.muruganandam=hotmail....@gnucash.org> on behalf of Stephen <rilesthemtobeli...@gmail.com> Sent: Sunday, January 15, 2023 4:30 AM To: gnucash-user@gnucash.org <gnucash-user@gnucash.org> Cc: gnucash-user@gnucash.org <gnucash-user@gnucash.org> Subject: [GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry I had a CD that I closed before it matured. The bank applied a penalty of 90 days interest at the CD rate. In fact the total penalty was figured as the sum of principal penalty of $1,366.62 and penalty amount paid from interest earned for the period of a partial month of $162.89 for a total penalty of $1,529.51. The statement clearly shows a payment of +$162.89 and a penalty of -$162.89 and a penalty amount from principal of the $1,366.62. The interest earned and penalized is a net $0 so I could just book the $1,366.62 as a charge to the CD account and as as an charge to an early withdrawal penalty account to obtain the closing balance on the account. But it seems to me that I should be booking at least 3 splits to show the interest earned account and interest earned penalized account and the rest of the penalty as a charge to the CD account but the numbers produce orphans or imbalances. I'm treating all entries as income items so interest earned, interest penalized, and a principal penalty. They are multiple entries and not multiple splits in the CD income account. Is this the correct way to book this? Some guidance would be appreciated. Thanks in advance. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
