setting up a car loan

Harold hh6199 at yahoo.com
Thu Feb 10 10:36:50 EST 2011


I have used GnuCash for a few years but have never utilized a lot of its capabilities. I am not an accountant but understand some basic accounting practices. I use version 2.2.9 in a Ubuntu distro.

In trying to set up the accounts for my car loan. I have the loan amount, the original amount before down payment, and the interest rate. When I go to set up the liability account for the loan and get to the 'Opening Balance' tab, I get confused about the 'Transfer type'. What do I need to use there?

The down payment was part trade-in and part cash from a credit union account that I have in my GnuCash. It seems by using the help documents that I would put the total cost amount in the asset account. The loan account would reflect the amount financed by the bank. Other than the transfer type, I get confused on how to get the amounts for the down payment listed in a split transaction. Is the initial transaction going to be different from future payments that will only be for principle and interest?

Setting up split transaction kinda give me fits, also. 

Thanks,
Harold



      


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