Line of credit loan - mortgage

[John Layman]

I have our home equity line of credit as a sub-account under
Liabilities/Loans/Other Loans.  The actual equity asset, however, is found
under Assets/Fixed Assets/House.  I make no effort to represent the
potential market value of the house in the asset account.  Instead,
beginning with the original purchase price, the expense of major renovations
transfers into (debits) the asset account.  My purpose, beyond approximating
what the house means to our net worth, is to have a clear understanding of
what we would have to realize from the sale of the house to break even.  Of
course, any mortgage liability (including the equity line of credit) serves
as an offset against the asset in our overall financial picture.

-----Original Message-----
From: gnucash-user-bounces at gnucash.org
[mailto:gnucash-user-bounces at gnucash.org] On Behalf Of John Wilson & Diane
Martin
Sent: Tuesday, May 18, 2010 9:19 AM
To: dude man
Cc: gnucash-user at gnucash.org
Subject: Re: Line of credit loan - mortgage

I'm not an accountant but when I recently activated a line of credit I
treated it as a Liability as it has to be paid off like a credit card
account.
I would be interested in other peoples approaches to this problem.
HTH
John
On Tue, 2010-05-18 at 21:29 +1000, dude man wrote:
> Hi,  Can someone tell me how to set up a from the beginning a structure
for a mortgage that is a line of credit loan?  To complicate matters further
it's a construction loan so while I have been approved for the whole amount
only part payments of lump sums are being made to the builder.
> 
> I don't know what to include in the Assets/Liabilities etc.
> 
> If someone could point me in the right direction I would appreciate it
> 
>  
> 
> Thanks
> 
>  
> 
> Chris
>  		 	   		  
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