[GNC] accounting for the market value of a fixed asset

[Stephen M. Butler]

On 08/05/2018 07:06 AM, BOSCH John(J) - BRUCE POWER wrote:
> Hi:  I'm having trouble setting up the accounts to reflect the scenario below:
>
> Fixed asset = 2015 Pickup truck purchased in June 2015 for $62000
> Liability = Current outstanding loan amount = $38000
> ?? = Current market value of the truck = Approx $45000
>
> Since I'm just starting to use GNUcash I input the values thus:
>
> Fixed asset = 2015 truck: $45000
> Liability = Truck Loan: $38000
>
> What happens is that I get an entry in the "imbalance" account of $7000 which makes sense because the asset value doesn't match the loan amount.
>
> Question:  How do I structure the accounts above to reflect that I have $7000 worth of equity in the vehicle without it showing up in the imbalance account?
>
> Thanks in advance
>
> John

You need an Equity Account to which the $7000 would be applied to make
the entry balance.  Remember, Assets = Liabilities + Equity.

-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
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