> On 20 Nov 2019, at 15:24, Mark Phillips <[email protected]> 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 [email protected] 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.
