Hi Michael. Thanks for helping. In fact just reading your first sentence, made it become clear: opening the books on 31.12.2023 means that every previous transaction has already been accounted for.
I'm in Switzerland and there's no thing like the escrow account you've mentioned - thanks. F. https://www.instagram.com/boniforti_music https://soundcloud.com/boniforti_music https://bonny-j.bandcamp.com Am Sa., 28. Sept. 2024 um 23:54 Uhr schrieb Michael or Penny Novack via gnucash-user <[email protected]>: > > > HERE you are discussing transactions that were NOT enterable ib your > books (which are irrelavant to books begun 31.12.2023 > > > > I would enter it as follows (let's assume the real estate total cost is > > 500k): > > > > Assets:Fixed Assets:Real Estate - increase 300k > > Liabilities:Loans:Mortgage Loans: - increase 300k > > Assets:Fixed Assets:Real Estate - increase 150k (downpayment) > > Assets:Current Assets:Checking Account - decrease 150k (downpayment) > > Assets:Fixed Assets:Real Estate - increase 50k (reservation) > > Assets:Current Assets:Checking Account - decrease 50k (reservation) > > > > If the above is correct, there's another question. I started using > GnuCash > > this year and put the opening balances of all my accounts dating back to > > 31.12.2023, but I bought my apartment back in 2018. If I look at it now, > I > > would have a huge negative balance on my checking account (because the > > money was spent in 2018 but I have the opening balance from 31.12.2023). > > Should I just add another "opening balance" in my checking account which > > equals both the downpayment and the reservation fee? > > If what I am about to say confuses you, come back to this line and > think---- if on 31.12.2023 you had 10,000 in your checking account, of > what relevance is it (on 31.12.2023) > how it got there. All that matters NOW is how much. > > When you opened your books 31.12.2023 you should have entered AS OF THAT > DATE > > "assets":"fixed assets":"Real Estate":"House":"basis" debit > 500.000 (credit equity 500.000) that's what it cost <NOT > relevant where money came from> > > "assets":"current assets":"bank accounts":"bank y":"checking" debit > checking account balance of that date (credit equity that amount If > seems odd, you could have current assets other than in bank accounts, > could have accounts at multiple banks, could have accounts other than > checking. You can always do it simpler at the start and modify your CoA > later as needed. > > "liabilities":"mortgages":"mortgage-abc" credit balance still owed > 31.12.2023 and debit equity that amount > > BTW ---- I would use as description "opening entries" and of course if > you use the Starting Mount facility the equity side would have been done > for you. Since I learned pen and ink on paper I use explicit transactions. > > NOTE: What jurisdiction? Does your mortgage payment include an amount > paid into an escrow account from which insurance and taxes are paid. If > so, the balance as of 31.12.2023 would be an asset "escrow account" > Legally yours even though you can't access it. > > Michael D Novack > > > > > _______________________________________________ > 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.
