questions about entering a home purchase

[Dawning Sky]

On 3/19/07, Kevin Hale Boyes <kcboyes at gmail.com> wrote:
> Reading over all the replies here, it has started to make sense.
>
> I guess I'd wanted a single transaction to
> represent the value of the house but several transactions work just
> as well.

You can also utilize an escrow account.  It is how most real estate
transactions are conducted these days anyways, at least in the US.

When you wrote the checks, let the money go into the escrow account.
Then when you finalized the mortgage and got the house, you would pay
from the escrow account and the mortgage loan account.  This way, the
house value would be in a single transaction.

DS

>
> Thanks everyone for your help
> Kevin.
>
>
> On 3/18/07, David Reiser <dbreiser at earthlink.net> wrote:
> > Kevin,
> >
> > They probably didn't turn over the house to you without your handing
> > them the two checks, did they? I'd be tempted to create a transaction
> > for each check you write (on the day the check was either written or
> > handed over to the third party). When they cleared the bank wasn't as
> > important as when you paid them.
> >
> > For each check, one split would come from the checking account, the
> > balancing split would be the fixed asset account. For the final loan
> > paper signing, one split would still be the fixed asset account, but
> > now the balancing split has to come from the liabilities account.
> > IANAA, so I'd end up playing with the debit/credit columns until the
> > numbers balanced correctly.
> >
> > If you do go back and re-enter transactions, you'll have to do a
> > little dance for the first bank reconciliation, since you will have
> > changed a reconciled transaction. But as long as the ending balance
> > agrees and all appropriate checks (including the new replacement
> > transactions) are marked as cleared you'll be ok.
> >
> > I don't think it really matters which way you do this -- either you
> > have a single entry for the asset acquisition with multiple splits
> > from the checking account and a loan (but not being able to track
> > separate dates for the multiple splits), or you have a series of
> > transactions in which you cover part of an asset acquisition  on
> > different days, but the asset value doesn't fully show up in your
> > file until after the last transaction takes place.
> >
> > Dave
> >
> > On 18 Mar 2007, at 11:27:11 PM, Kevin Hale Boyes wrote:
> >
> > > Thanks but I guess I'm not sure I know how to do that.
> > > The increase to the House account is the price I paid
> > > for the house.  Are you suggesting I break that amount
> > > into separate transactions?
> > >
> > > Thanks,
> > > Kevin.
> > >
> > >
> > > On 3/18/07, Maf. King <maf at chilwell.net> wrote:
> > >> On Sunday 18 Mar 2007, Kevin Hale Boyes wrote:
> > >>> I'm trying to enter the transaction for purchasing a house.
> > >>>
> > >>
> > >> <SNIP>
> > >>
> > >>> They were two different cheques cashed at different times.
> > >>> In fact I've reconciled the transactions in GC already.
> > >>>
> > >>> So, I don't know how to enter the above split transaction
> > >>> with the different dates.
> > >>>
> > >>
> > >> Hi Kevin,
> > >>
> > >> I think that you need to record this as two separate transactions
> > >> - not as
> > >> splits to one big transaction.
> > >>
> > >> HTH,
> > >> Maf.
> > >>
> > >>
> > >>
> > >>
> > > _______________________________________________
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> > --
> > David Reiser
> > dbreiser at earthlink.net
> >
> >
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