[GNC] A question on loans

[Stephen M. Butler]

On 11/21/19 10:06 AM, Mark Phillips wrote:
> David,
>
> Thanks for your emails and explanations. What I am really looking for, is
> how to do this transaction:
>
> Increase the loan amount by $30,000 to bring it to the current value.
>
> I don't know where to put the offsetting entry for the $30,000. It does not
> go into checking, as I don't have a windfall of $30K in the checking
> account or against the Condo asset, nor in an expense account. So where
> does it go?
>
> Mark


I'm trying to remember your earlier email on this.  I think you said you
consolidated some debts.  Was that 30K worth?

Some other areas that would be expenses:

1.  Is some of that interest that you paid?  That would be an expense
item and would not reduce your loan balance.  Perhaps you put the entire
payment against the loan when part of it was to pay the interest.

2.  Escrow account?  My monthly payment includes an amount that goes to
another asset account for Mortgage Escrow.  Out of that the pay the
property taxes and insurance.  When they pay those, then it would be an
expense for you but would reduce the Mortgage Escrow instead of the
loan.  Perhaps you booked escrow against the loan and erroneously
reduced your loan amount.

3.  Fees -- did the consolidation cost you some fees that were added to
the loan balance.  Those should be booked as expenses.

4.  Is there a HELOC involved were you pulled some funds out?  That
would have increased your loan balance and the offset would depend on
what you did with those funds.

You need to figure out why the bank shows 30K more in funds due them
than you show in GnC.  Depending on what happened would indicate how
those funds should be booked.  Worst case you may have to book it
against equity for "unknown/unremembered items".

Your personal CPA should be able to provide better guidance here.  All
of the above is just speculation.

> On Wed, Nov 20, 2019 at 3:45 PM David Cousens <davidcousens at bigpond.com>
> wrote:
>
>> Mark,
>>
>> My apologies , I thought your question referred to recording the current
>> value of your property. If your accountant is getting the bank statements,
>> to catch your personal copy of the accounts up you will need to obtain
>> copies of the bank statements either from him or the bank, if you do not
>> have them already.
>>
>> Your bank may alsooffer  online access to records or offer a download of
>> records in OFX or a similar format (my bank provides this facility for the
>> past 7 years) in which case you can import the OFX files and then reconcile
>> them against your statements (I have had errors on importing on rare
>> occasions - transactions may be duplicated in the records for your bank
>> account and loan account for example and imported twice although GNuCash
>> will try to identify duplicates) which is quicker than entering them by
>> hand
>> from the statements.
>>
>> GnuCash has a number of import data formats ( see the GnuCash Tutoria and
>> Concepts Guide
>> (https://www.gnucash.org/docs/v3/C/gnucash-guide/chapter_importing.html)
>> or
>> the Help manual
>> https://www.gnucash.org/docs/v3/C/gnucash-help/trans-import.html. There is
>> currently a lot of duplication here as the material in the Guide has been
>> largely already beenmoved to the Help manual and I am in the process of
>> rewriting the Guide section as import examples. I have found OFX to be the
>> most relaible as it has a fairly tight standard and CSV to be more
>> problematical because it has no real standard. QIF is generally OK as
>> well.
>> In most cases start with small data sets (e.g month) first to sort out any
>> importing difficulties and train the import matcher then increase the
>> dataset size once you have it working reliably.
>>
>> Another possibility is that your accountant (for a fee of course) may be
>> able to provide you with exported transactions from his records if he has
>> entered them digitally.
>>
>> David Cousens
>>
>>
>>
>> -----
>> David Cousens
>> --

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