gnucash question plz

[Derek Atkins]

Hi,

GnuCash questions should be asked on the gnucash-user mailing list; you
shouldn't email individuals directly.  I've forwarded your message
there -- please make sure you reply back to the gnucash-user list.  You
may need to subscribe to ensure you receive all replies.

Manolis Karamousadakis <polemidis at gmail.com> writes:

> Hello, I have a -maybe stupid- question but I cannot find the answer in the
> web. I asked at the #gnucash IRC channel but I haven;t got an answer yet.
>
> I would appreciate if you can help me clarify this!!! 
>
> My undestanding is that when you buy an fixed asset with cash you debit your
> Asset Cash account and credit  your Fixed Asset acount. 

No, you have it backwards.  When you buy a fixed asset you CREDIT your
cash and DEBIT your Fixed Asset.

> But how do you property account when you buy something that was way too low
> priced? For example I bought A solar array. I paid $3000. This array installed
> adds $15000 value to my property. 
> Now I want take a loan from a lender, and he wants to see my Assets value or
> the Net Worth Statement. How I will represent this increase in my assets in
> double accounting, as the increase in real assets does not much the decrease
> in the payment. 
>
> Same thing when I build some asset. Ps I buy the lumber, build a shed. The
> costs of the materials are a lot less that the shed as unit.
>
> Thank you for your time!
> Plz if you cannot answer me that can you at least redirect me where to find
> the answer????

I have forwarded this to the list so someone else can answer the rest.

> --
> Emmanouil Karamousadakis 
> Certified Permaculture Designer
> AGreekulture Farmstead
> Winthrop, ME 04364

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available