[GNC] gnucash-user Digest, Vol 230, Issue 18

[Chris Skudder]

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 $100,000, and create another "split" in the transaction:
  $5,000 credit to a new account - - for instance, "Income:credit for repairs.")

Chris


*From:* gnucash-user-requ...@gnucash.org
*Sent:* Saturday, May 7, 2022, 11:00 AM
*To:* gnucash-user@gnucash.org
*Subject:* gnucash-user Digest, Vol 230, Issue 18

> Message: 11 Date: Sat, 7 May 2022 11:00:05 -0400
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

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Re: [GNC] gnucash-user Digest, Vol 230, Issue 18

[Chris Skudder]

   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]
To: [4]gnucash-user@gnucash.org
Subject: [GNC] Account for Seller Credit when purchasing a home
Message-ID:
[5]

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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