Fred The question is how much of that $720K downpayment do you still owe if any.
Your original loan to them was an Asset in your books. You would have to credit that asset account by 600K and then debit the Liability account for your loan to the devloper by that 600K. If the balance of that loan is reduced by an additional 120K. That 120K is essentially a forgivenee of debt i.e you debit the liability loan account by 120K and credit 120K to eitheran income or equity account "Debt Forgiveness". In some jurisdictions it might be credited to retained earnings. Which, will depend on how your jurisdiction treats gifts for tax purposes and whether it is regarded as income or a gain which is where you need the advice of a professional accountant your jurisdiction. On Wed, 2026-04-01 at 08:08 +0900, Fred Tydeman 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. -- David Cousens _______________________________________________ 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.
