Re: [GNC] A question on loans
On 11/21/2019 1:06 PM, Mark Phillips wrote: David, Thanks for your emails and explanations. What I am really looking for, is how to do this transaction: Increase the loan amount by $30,000 to bring it to the current value. I don't know where to put the offsetting entry for the $30,00 When opening books (creating initial balance amounts for accounts) the opposite side of the transaction(s) would be equity. Either a whole bunch of individual transactions or two split transactions (one for all the debits to equity and one for all the credits). Theoretically can do it with ONE split transaction split on both sides and just the net to equity but that'd be hard to do correctly. Michael D Novack PS -- and this is NOT really a gnucash question (that answer would be the same no matter what you used, even old fashioned pen and ink on paper. Software like gnucash does NOT mean you don't have to learn the fundamentals of double entry bookkeeping/accounting. The software makes it easier to do, but you still have to know WHAT to do. ___ 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.
Re: [GNC] A question on loans
Mark, OK so you want to record a single transaction to bring the balance up to date without recording all of the intervening transactions which you have not recorded. This is a similar situation to an opening balance on an existing account. The simplest way to manage this is to create an account in Equity:Loan:UnenteredTransactions and use this as the target account for your single transaction. Since this transaction increases the loan amount the following transaction will achieve that Liabilities:Loan Cr $3 Equity:Loan:UnenteredTransactions Dr $3 I would annotate that transaction with a full description of what it does and the date at which it establishes the correct balance in the account. If you do decide in the future to enter the transactions you have missed as per normal, you would enter them to the appropriate expense and income accounts as you would when normally recording a transaction at the date on which the original transaction occurred. At the current date, you would create a reversing transaction for the amount of the missed transaction you have just entered. Say the missed transaction was a loan payment for $500 from your bank account on 10/10/2016 you would create the following entry recording that payment 10/10/2016Labilities:LoanDr $500 Asset:BankCr $500 and a reversing transaction at the current date 22/11/2019 Liabilities:Loan Cr $500 Equity:Loan:UnenteredTransactions Dr $500 to remove that amount from the single transaction accountng for the unentered transactions. I would annotate it indicate the date of the previously missed transaction. When you have entered all of the missed transaction, the balance of Equity:Loan:UnenteredTransactions will then be 0. David Cousens - David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html ___ 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.
Re: [GNC] A question on loans
> On Nov 20, 2019 w47d324, at 12:08 PM, Mark Phillips > wrote: > > My apologies, I did a very poor job of asking my question the first time. > Let me try again. > > My accounts (with simplified names) > Asset - Condo and Checking > Liability - Mortgage > Expenses - Mortgage Interest > > I set up the accounts when I bought the condo a few years ago, made a few > entries for mortgage payments, then stopped. Time passed, the loan changed > banks to a line of credit, and some charges were made to the line of credit > for some non-condo related debt consolidation. > > Time passed, and now I would like to get these accounts caught up. There is > a $30,000 difference between the current Mortgage balance (larger) and what > is in gnucash. How do I make an entry to get the Mortgage account to match > the bank statement? You need to somehow model what happened to that original loan. I’m not exactly straight on if you have a loan or a line of credit or both. If both, you should likely use two separate accounts for that, but I’m not 100% certain. If a loan, then it was likely technically done as a refi, which is really a new loan with new terms (even if they match the old) that pays off the old loan and then starts all over. So that’s what you should enter in GnuCash. Are you still carrying those consolidated debts at their original values? They should have been ‘paid off’ with the line of credit account. You’d need to make these entries to clean that up as well. You made loan payments but didn’t record them? So then your checking account is off by the sum of those payments, no? It should be. Simply record those payments for the dates they actually were made. Regards, Adrien ___ 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.
Re: [GNC] A question on loans
I concur with Stephen here. The answer to your question (as with all accounting questions in my opinion) is to model as closely as possible the real-world transactions. As I recall from your earlier post, you stopped using GnuCash for several years, now want to pick it back up and be all ‘caught up’? (or did you just not record loan activity, in which case how did you keep your checking account straight as you made payments?) You have 2 choices: 1. Fill in all the actual interim historical transactions. 2. Make a handful of aggregate transactions modeling as close as possible where money flowed. (as Stephen noted, that increased loan principle had to go somewhere, ‘where’ will tell you how to balance that transaction) Note, you don’t have to enter transactions with the current date. You can enter them with their actual historic dates. (especially since you said this is just for your own personal use and not any legal filing purposes) A third choice is to archive the file and start fresh from today with accurate current balances. Regards, Adrien > On Nov 21, 2019 w47d325, at 12:27 PM, Stephen M. Butler > wrote: > > On 11/21/19 10:06 AM, Mark Phillips wrote: >> David, >> >> Thanks for your emails and explanations. What I am really looking for, is >> how to do this transaction: >> >> Increase the loan amount by $30,000 to bring it to the current value. >> >> I don't know where to put the offsetting entry for the $30,000. It does not >> go into checking, as I don't have a windfall of $30K in the checking >> account or against the Condo asset, nor in an expense account. So where >> does it go? >> >> Mark > > > I'm trying to remember your earlier email on this. I think you said you > consolidated some debts. Was that 30K worth? > > Some other areas that would be expenses: > > 1. Is some of that interest that you paid? That would be an expense > item and would not reduce your loan balance. Perhaps you put the entire > payment against the loan when part of it was to pay the interest. > > 2. Escrow account? My monthly payment includes an amount that goes to > another asset account for Mortgage Escrow. Out of that the pay the > property taxes and insurance. When they pay those, then it would be an > expense for you but would reduce the Mortgage Escrow instead of the > loan. Perhaps you booked escrow against the loan and erroneously > reduced your loan amount. > > 3. Fees -- did the consolidation cost you some fees that were added to > the loan balance. Those should be booked as expenses. > > 4. Is there a HELOC involved were you pulled some funds out? That > would have increased your loan balance and the offset would depend on > what you did with those funds. > > You need to figure out why the bank shows 30K more in funds due them > than you show in GnC. Depending on what happened would indicate how > those funds should be booked. Worst case you may have to book it > against equity for "unknown/unremembered items". > > Your personal CPA should be able to provide better guidance here. All > of the above is just speculation. ___ 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.
Re: [GNC] A question on loans
On 11/21/19 10:06 AM, Mark Phillips wrote: > David, > > Thanks for your emails and explanations. What I am really looking for, is > how to do this transaction: > > Increase the loan amount by $30,000 to bring it to the current value. > > I don't know where to put the offsetting entry for the $30,000. It does not > go into checking, as I don't have a windfall of $30K in the checking > account or against the Condo asset, nor in an expense account. So where > does it go? > > Mark I'm trying to remember your earlier email on this. I think you said you consolidated some debts. Was that 30K worth? Some other areas that would be expenses: 1. Is some of that interest that you paid? That would be an expense item and would not reduce your loan balance. Perhaps you put the entire payment against the loan when part of it was to pay the interest. 2. Escrow account? My monthly payment includes an amount that goes to another asset account for Mortgage Escrow. Out of that the pay the property taxes and insurance. When they pay those, then it would be an expense for you but would reduce the Mortgage Escrow instead of the loan. Perhaps you booked escrow against the loan and erroneously reduced your loan amount. 3. Fees -- did the consolidation cost you some fees that were added to the loan balance. Those should be booked as expenses. 4. Is there a HELOC involved were you pulled some funds out? That would have increased your loan balance and the offset would depend on what you did with those funds. You need to figure out why the bank shows 30K more in funds due them than you show in GnC. Depending on what happened would indicate how those funds should be booked. Worst case you may have to book it against equity for "unknown/unremembered items". Your personal CPA should be able to provide better guidance here. All of the above is just speculation. > On Wed, Nov 20, 2019 at 3:45 PM David Cousens > wrote: > >> Mark, >> >> My apologies , I thought your question referred to recording the current >> value of your property. If your accountant is getting the bank statements, >> to catch your personal copy of the accounts up you will need to obtain >> copies of the bank statements either from him or the bank, if you do not >> have them already. >> >> Your bank may alsooffer online access to records or offer a download of >> records in OFX or a similar format (my bank provides this facility for the >> past 7 years) in which case you can import the OFX files and then reconcile >> them against your statements (I have had errors on importing on rare >> occasions - transactions may be duplicated in the records for your bank >> account and loan account for example and imported twice although GNuCash >> will try to identify duplicates) which is quicker than entering them by >> hand >> from the statements. >> >> GnuCash has a number of import data formats ( see the GnuCash Tutoria and >> Concepts Guide >> (https://www.gnucash.org/docs/v3/C/gnucash-guide/chapter_importing.html) >> or >> the Help manual >> https://www.gnucash.org/docs/v3/C/gnucash-help/trans-import.html. There is >> currently a lot of duplication here as the material in the Guide has been >> largely already beenmoved to the Help manual and I am in the process of >> rewriting the Guide section as import examples. I have found OFX to be the >> most relaible as it has a fairly tight standard and CSV to be more >> problematical because it has no real standard. QIF is generally OK as >> well. >> In most cases start with small data sets (e.g month) first to sort out any >> importing difficulties and train the import matcher then increase the >> dataset size once you have it working reliably. >> >> Another possibility is that your accountant (for a fee of course) may be >> able to provide you with exported transactions from his records if he has >> entered them digitally. >> >> David Cousens >> >> >> >> - >> David Cousens >> -- -- 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.
Re: [GNC] A question on loans
David, Thanks for your emails and explanations. What I am really looking for, is how to do this transaction: Increase the loan amount by $30,000 to bring it to the current value. I don't know where to put the offsetting entry for the $30,000. It does not go into checking, as I don't have a windfall of $30K in the checking account or against the Condo asset, nor in an expense account. So where does it go? Mark On Wed, Nov 20, 2019 at 3:45 PM David Cousens wrote: > Mark, > > My apologies , I thought your question referred to recording the current > value of your property. If your accountant is getting the bank statements, > to catch your personal copy of the accounts up you will need to obtain > copies of the bank statements either from him or the bank, if you do not > have them already. > > Your bank may alsooffer online access to records or offer a download of > records in OFX or a similar format (my bank provides this facility for the > past 7 years) in which case you can import the OFX files and then reconcile > them against your statements (I have had errors on importing on rare > occasions - transactions may be duplicated in the records for your bank > account and loan account for example and imported twice although GNuCash > will try to identify duplicates) which is quicker than entering them by > hand > from the statements. > > GnuCash has a number of import data formats ( see the GnuCash Tutoria and > Concepts Guide > (https://www.gnucash.org/docs/v3/C/gnucash-guide/chapter_importing.html) > or > the Help manual > https://www.gnucash.org/docs/v3/C/gnucash-help/trans-import.html. There is > currently a lot of duplication here as the material in the Guide has been > largely already beenmoved to the Help manual and I am in the process of > rewriting the Guide section as import examples. I have found OFX to be the > most relaible as it has a fairly tight standard and CSV to be more > problematical because it has no real standard. QIF is generally OK as > well. > In most cases start with small data sets (e.g month) first to sort out any > importing difficulties and train the import matcher then increase the > dataset size once you have it working reliably. > > Another possibility is that your accountant (for a fee of course) may be > able to provide you with exported transactions from his records if he has > entered them digitally. > > David Cousens > > > > - > David Cousens > -- > Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html > ___ > 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. > ___ 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.
Re: [GNC] A question on loans
Mark, My apologies , I thought your question referred to recording the current value of your property. If your accountant is getting the bank statements, to catch your personal copy of the accounts up you will need to obtain copies of the bank statements either from him or the bank, if you do not have them already. Your bank may alsooffer online access to records or offer a download of records in OFX or a similar format (my bank provides this facility for the past 7 years) in which case you can import the OFX files and then reconcile them against your statements (I have had errors on importing on rare occasions - transactions may be duplicated in the records for your bank account and loan account for example and imported twice although GNuCash will try to identify duplicates) which is quicker than entering them by hand from the statements. GnuCash has a number of import data formats ( see the GnuCash Tutoria and Concepts Guide (https://www.gnucash.org/docs/v3/C/gnucash-guide/chapter_importing.html) or the Help manual https://www.gnucash.org/docs/v3/C/gnucash-help/trans-import.html. There is currently a lot of duplication here as the material in the Guide has been largely already beenmoved to the Help manual and I am in the process of rewriting the Guide section as import examples. I have found OFX to be the most relaible as it has a fairly tight standard and CSV to be more problematical because it has no real standard. QIF is generally OK as well. In most cases start with small data sets (e.g month) first to sort out any importing difficulties and train the import matcher then increase the dataset size once you have it working reliably. Another possibility is that your accountant (for a fee of course) may be able to provide you with exported transactions from his records if he has entered them digitally. David Cousens - David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html ___ 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.
Re: [GNC] A question on loans
Mark, Your property is an asset which you own hold and control. The connection between it and the liability that the loan represents is established at the time you took out the loan. From that point forward they are treated separately in accounting. Changes in the details of the loan do not affect the asset only the liability. So the change to a line of credit is reflected totally in the liability account for the loan. The only time the loan and the asset might interact in the future is in the event of foreclosure of the loan. The difference between the asset's current value and the outstanding loan amount does however give you an estimate of your equity in the property The only things which will affect the value of the asset are things like changes in property values in the area, depreciation and market forces. However these events are not realized until the property is actually sold. If you have reliable estimates of these changes you can certainly record them. A common procedure is to record the initial purchase value of the asset in a subaccount of an overall placeholder account for the asset and record any unrealized changes in a contra account. The account structure will look something like: Assets:Fixed Assets:Condo Assets:Fixed Assets:Condo:InitialPurchase Assets:Fixed Assets:Condo:Improvements capital improvements to the asset Assets:Fixed Assets:Condo:UnrealizedValueChanges You would need a corresponding account under equity Equity:Condo:UnrealizedValueChanges If you make a capital improvement to the property the recording will look like Assets:CurrentAssets:Bank Cr x Assets:Fixed Assets:Condo:ImprovementsDr x If you are recording an increase in the property's market valuation Assets:Fixed Assets:Condo:ImprovementsDr Equity:Condo:UnrealizedValueChanges Cr and similarly a decrease in market valuation Assets:Fixed Assets:Condo:ImprovementsCr Equity:Condo:UnrealizedValueChanges Dr If you are spending money on the property but it is for consumables which don't add to its long term property value you would record the expenditure as an expense as normal. The unrealized value changes would not be subject to taxation in most jurisdictions (but not all). *DISCLAIMER: The above is only a generic illustration of how you could record such transactions in GnuCash and should not be construed as advice on how best to record for your jurisdiction. You will need to consult a local accountant for specific advice relevant to your particular situation.* Should you sell the property, then you would have to apply a reversal of the total current balance of the unrealized value changes (it may be positive or negative if the market has dropped) cancelling that balance contribution to the assets and equity and then record the actual sale of the property for the actual sale value including the paying out of the residual mortgage value. Alternatively you can do a correction to the unrealized value changes to bring the total value of property to the sale price. This will give you the actual gain or loss on the property for any capital Gains Tax purposes if needed. If your jurisdiction applies gains and losses from market value fluctuation, the calculations are much more complex and you will need to apply your applicable taxation legislation and your accountant. David Cousens - David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html ___ 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.
Re: [GNC] A question on loans
On 11/20/2019 1:13 PM, Mark Phillips wrote: A PS to my last email about the mortgage accounts. My gnucash accounts are for my financial tracking purposes only. My accountant gets bank statements and other original documents for tax purposes. He has nothing to do with my gnucash accounts, and is not interested in seeing them. Just in case my earlier email sounded like I was laundering money or doing something to cheat the IRS! Or, maybe I have been watching too many episodes of the Black List These are no (actually) gnucash questions as you would have exactly the same questions were you using old fashioned pen and ink on paper. Add the proviso that I am NOT qualified as an accountant (but do know some things) You were told "enter the building at its current value". That is wrong. You enter the BASIS (what you paid for it) plus any expenditures that qualify as CAPITAL IMPROVEMENTS (consult your accountant -- but I think you will find things like new heating system, new roof, etc. ). The reason for this is that if/when you dispose of this asset, hopefully for a profit, the amount of CAPITAL GAIN will be clear (taxed at a different rate than ordinary income). The loan you enter at its current balance. The opposite side of these transactions would be equity. When opening new books you can have a whole bunch of individual transactions, or two (big) splits, one for equity debits and one for equity credits, or one giant split on both sides (I do NOT recommend this if inexperienced with gnucash, OR you can use the "starting balance" feature (but I never do that). Michael D Novack ___ 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.
Re: [GNC] A question on loans
A PS to my last email about the mortgage accounts. My gnucash accounts are for my financial tracking purposes only. My accountant gets bank statements and other original documents for tax purposes. He has nothing to do with my gnucash accounts, and is not interested in seeing them. Just in case my earlier email sounded like I was laundering money or doing something to cheat the IRS! Or, maybe I have been watching too many episodes of the Black List Mark On Wed, Nov 20, 2019 at 11:08 AM Mark Phillips wrote: > My apologies, I did a very poor job of asking my question the first time. > Let me try again. > > My accounts (with simplified names) > Asset - Condo and Checking > Liability - Mortgage > Expenses - Mortgage Interest > > I set up the accounts when I bought the condo a few years ago, made a few > entries for mortgage payments, then stopped. Time passed, the loan changed > banks to a line of credit, and some charges were made to the line of credit > for some non-condo related debt consolidation. > > Time passed, and now I would like to get these accounts caught up. There > is a $30,000 difference between the current Mortgage balance (larger) and > what is in gnucash. How do I make an entry to get the Mortgage account to > match the bank statement? > > Thanks, and my apologies for sending a poorly written question in > the first place. > > Mark > > On Wed, Nov 20, 2019 at 10:02 AM Tommy Trussell > wrote: > >> On Wed, Nov 20, 2019 at 9:28 AM Mark Phillips >> wrote: >> >>> I have a rental property, and I am just setting it up in gnu cash. The >>> property has an existing loan. I have paid down some of the loan, but am >>> still making payments. How do I set up the accounts so I reflect the >>> purchase price of the condo correctly, and also show the current correct >>> loan balance? >>> >>> Thanks! >>> >>> Mark >>> >> >> Have you yet read Chapter 8 of the GnuCash Tutorial and Concepts Guide? >> It's available here: >> >> https://www.gnucash.org/docs.phtml >> >> >> >> >>> - >>> 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 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.
Re: [GNC] A question on loans
My apologies, I did a very poor job of asking my question the first time. Let me try again. My accounts (with simplified names) Asset - Condo and Checking Liability - Mortgage Expenses - Mortgage Interest I set up the accounts when I bought the condo a few years ago, made a few entries for mortgage payments, then stopped. Time passed, the loan changed banks to a line of credit, and some charges were made to the line of credit for some non-condo related debt consolidation. Time passed, and now I would like to get these accounts caught up. There is a $30,000 difference between the current Mortgage balance (larger) and what is in gnucash. How do I make an entry to get the Mortgage account to match the bank statement? Thanks, and my apologies for sending a poorly written question in the first place. Mark On Wed, Nov 20, 2019 at 10:02 AM Tommy Trussell wrote: > On Wed, Nov 20, 2019 at 9:28 AM Mark Phillips > wrote: > >> I have a rental property, and I am just setting it up in gnu cash. The >> property has an existing loan. I have paid down some of the loan, but am >> still making payments. How do I set up the accounts so I reflect the >> purchase price of the condo correctly, and also show the current correct >> loan balance? >> >> Thanks! >> >> Mark >> > > Have you yet read Chapter 8 of the GnuCash Tutorial and Concepts Guide? > It's available here: > > https://www.gnucash.org/docs.phtml > > > > >> - >> 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 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.
Re: [GNC] A question on loans
> On 20 Nov 2019, at 15:24, Mark Phillips wrote: > > I have a rental property, and I am just setting it up in gnu cash. The > property has an existing loan. I have paid down some of the loan, but am > still making payments. How do I set up the accounts so I reflect the > purchase price of the condo correctly, and also show the current correct > loan balance? > > Thanks! > > Mark Hi, Mark. This is not something I have ever had to do myself, and I’m in the UK, but I think the correct procedure is to set up an account for a Fixed Asset (that is, the property), with a starting balance equal to the property’s current value, and set up a Liability Account for the loan. The latter would have a starting balance corresponding to the outstanding debt at the start of your accounts. Each time you make a repayment on the loan, you will decrease the liability. If the property changes in value at a particular date, you should make an adjustment between the asset account and the equity account you used for the starting balance. This process may not be the correct way of dealing with it in your jurisdiction, but it does at least allow you to keep track of what’s going on in the meantime. Regards, Michael ___ 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.
