On Thu, Jul 29, 2010 at 3:59 PM, Eric Abrahamsen
<e...@ericabrahamsen.net> wrote:
> This is something I've been wondering about for a while, thanks for
> explaining these different approaches so thoroughly!
I'm just glad it made sense to you.
> Now if you could
> just do the same for college loan accounting...
>
For my home loan, I have the following (no college loans in oz, we
have HECS instead. A loan where the government adds an extra 1.5% to
your tax when your income exceeds a certain amount)
The first transaction transfers the money you borrowed into the asset
you bought with money (a college loan I assume it's just into you bank
account or an expense education).
2010/01/01 Make Loan
Assets:House $10000
Liabilitiy:Mortgage
Then monthly your loan amount increases by the amount of interest your
bank charges you.
2010/01/01 Interest
Expense:Mortgage Interest $10
Liabilities:Mortage
But as you make a repayment you lower the amount that you owe on the loan.
2010/01/01 Repayment
Assets:Bank -$100
Liabilities:Mortgage
You could also use commodites instead (1 HOME) for the first
transaction and then use prices to see your actual financial worth
change over time.
2010/01/01 Make Loan
Assets:House 1 HOME
Liabilitiy:Mortgage -$10000
I can't directly remember the price syntax but it's something like the
following to revalue your home
P 2011/01/01 HOME $11000
Hope that helps,
Pete
