stephen one inquisitive question. did you receive any interest on the CD at all earlier and if so how did you account it
Saludos Cordiales Murugan ________________________________ From: gnucash-user <[email protected]> on behalf of Stephen <[email protected]> Sent: Sunday, January 15, 2023 5:38 PM To: Gyle McCollam <[email protected]>; [email protected] <[email protected]> Subject: Re: [GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry Thanks to you and Murugan I got this sorted. As usual, over-thought and over-wrought. Although I'm sure I could show all the changes in one split entry it was easiest for me to credit the interest 162.89 as one standalone entry first. Then I could see my way clearly to showing the two penalty sub-amounts totaling 1529.51. Intuitively I fairly certain I could have shown the interest earned among the splits all as one entry but I'm going to quit while I'm ahead. I just didn't want to lose the detail of the separate penalty amounts nor their total. Again, many thanks. On 1/15/2023 11:23 AM, Gyle McCollam wrote: > 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 > > [email protected] <mailto:[email protected]>email > > ------------------------------------------------------------------------ > *From:* gnucash-user > <[email protected]> on behalf of > Murugan Muruganandam <[email protected]> > *Sent:* Sunday, January 15, 2023 11:17 AM > *To:* Stephen <[email protected]>; [email protected] > <[email protected]> > *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 > <[email protected]> on > behalf of Stephen <[email protected]> > Sent: Sunday, January 15, 2023 4:30 AM > To: [email protected] <[email protected]> > Cc: [email protected] <[email protected]> > 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 > [email protected] > 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 > [email protected] > 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 [email protected] 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. 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