mortgaging with gnucash

Sergey Okhapkin sos at sokhapkin.dyndns.org
Thu Sep 23 18:29:58 EDT 2004


> -----Original Message-----
> From: gnucash-user-bounces at gnucash.org
> [mailto:gnucash-user-bounces at gnucash.org] On Behalf Of Andrew
> Gelvin Burley Grimes

> 1) When I take out this mortgage loan for the house, will I set up a
> liability account for the house, and an expense account for the
> purchase of the house as well, so that the first transaction
> concerning
> the house will be to move (say) $100,000 from the liability
> account to
> the expense account?  Or, will I actually just create the liability
> account with an opening balance of $100,000, which will decrease as I
> make monthly payments?
>

Seems incorrect to me. House itself is an asset. Create asset account
"House" and liability account "Mortgage". Transfer loan amount from
"Mrtgage" to "House" and transfer downpayment amount from your bank
account to "House". The balance on "House" account will be equal to
purchase price. Your monthly mortgage payments will be transferred to
"Mortgage" account.




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