loan account issue

[DaveC49]

The bank considers its loan to you as an asset, the fees and interest charges
to the loan account are income to the bank, so the offset account for the
bank for these transactions is an income account. These transactionsto the
asset :loan account of the bank will increase the value of their asset, i.e.
they will be debits.

Your payments to the bank on the other hand decrease the value of one asset
of theirs, their loan to you, and increase the value of of another asset of
theirs, their cash holdings. As these decrease their asset they will be
credits to that account

Their statement to you only contains the parts (splits in Gnucash parlance)
of these transactions that affect their  asset account for the loan to you.
Using the values for 1 Aug, the transactions in the bank's acconts look
like:
                                          Debit                  |         
Credit
                                      
------------------------------------------
Asset:Loan                           68.40                |
Income:Fees & Interest                                 |        68.40
Asset:Loan                          2392.66             |        
Income:Fees&Interest                                   |        2392.66
Asset:Loan                                                   |       
3936.94
Asset:Cash                         3936.94              |

In your hands, the same loan is recorded as a Liability and the Fees and
Interest charges increase your liability. An increase in a Liability account
is recorded in a split with a credit to that account and a corresponding
debit to your Expense account for Fees and Interest. 

Your loan payment decreases your Liability to the bank, i.e. it is a debit
to that liability account, but decreases your cash in your bank account
asset, i.e. it is a credit to that account in your accounts. Using the same
transactions for 1 Aug you should see in your accounts after importing into
the Loan:Liability account ( note you will have to select the
Expense:Fees&Interest and Asset:Bank:Cash accounts as the transfer accounts
for each component while importing.

                                            Debit               |        
Credit
                                        
-------------------------------------
Liability:Loan                                               |          
68.40
Expense:Fees&Interest            68.40             |
Liability:Loan                                               |       2392.66
Expense:Fees&Interest        2392.66             |
Liability:Loan                      3936.94             |
Asset:Bank:Cash                                         |       3936.94

If the QIF does not import as above, I would compare the QIF files for an
import of your bank savings/cheque account with the QIF file for the loan
above and check the signs associated with deposits and withdrawals from your
savings/cheque account. For the bank your savings/cheque account is a
Liability. I would expect that your deposits should appear as positive
amounts and your withdrawals should be negative amounts in the QIF file (see
https://en.wikipedia.org/wiki/Quicken_Interchange_Format) for
yoursaving/cheque accoount statement/QIF file if the bank is following this
format. 

Correspondingly for the loan account QIF file, the fees and interest should
be positive(or unsigned) and payments should be negative in the QIF as they
appear in your statement.

Hope this helps sort this problem for you rather than confusing the issue
further.


David Cousens.



-----
David Cousens
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