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]>
<mailto:[email protected]>
on behalf of Stephen <[email protected]>
<mailto:[email protected]>
*Sent:* Sunday, January 15, 2023 5:38 PM
*To:* Gyle McCollam <[email protected]> <mailto:[email protected]>;
[email protected] <mailto:[email protected]>
<[email protected]> <mailto:[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]>
<mailto:[email protected] <mailto:[email protected]>>email
>
>
------------------------------------------------------------------------
> *From:* gnucash-user
> <[email protected]>
<mailto:[email protected]> on behalf of
> Murugan Muruganandam <[email protected]>
<mailto:[email protected]>
> *Sent:* Sunday, January 15, 2023 11:17 AM
> *To:* Stephen <[email protected]>
<mailto:[email protected]>; [email protected]
<mailto:[email protected]>
> <[email protected]> <mailto:[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]>
<mailto:[email protected]> on
> behalf of Stephen <[email protected]>
<mailto:[email protected]>
> Sent: Sunday, January 15, 2023 4:30 AM
> To: [email protected] <mailto:[email protected]>
<[email protected]> <mailto:[email protected]>
> Cc: [email protected] <mailto:[email protected]>
<[email protected]> <mailto:[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.
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