Right way to record a house loan

[Randall Hopper]

     I'm not sure how to handle equity on mortgage payments so that the Net
Worth report in GNU Cash actually works.

For example:  $100k house, $10k down, $90k loan

     (Assets      - Fixed Assets - House   ) = $10k
     (Liabilities - Loan         - House   ) = $90k
     (Expenses    - Interest     - Mortgage) = $0

Is this right?  Or should the $10k downpayment be put in an Equity account?

Then when making mortgage payments, where does the Principal part of the
payment go: as a deduction to the Liability Loan, or as an increase in the
Asset (or Equity) account?

Thanks,

Randall

-- 
Randall Hopper
aa8vb@nc.rr.com