This is clearly an accounting question more than a GnuCash question. Always consult with an accounting professional if it could make a difference in your future.
One approach might be the historic costing principle suggests that you won't record the $120k until you sell. Another approach, and this one is very questionable, would be that he paid you back $720k when he only owed $600k. No rational person would do this. This reminds me of people who get "large" valuations on their old cars when buying a new one. The value of the old junk is increased by $120k and price of the new car is increased by $120k. > On 03/31/2026 4:08 PM PDT Fred Tydeman <[email protected]> wrote: > > > In a foreign country, I had loaned a developer 600K of their currency. > He had been making interest only payments for some time. > He paid off the 600K loan by converting it into a 720K downpayment on > the loan (I now have from him) to buy an apartment he will build for me. > What is the 120K difference? How do I record it? > _______________________________________________ > 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.
