[GNC] How To Account For Mortgages With Redraw Amounts?

davidcousens49 at gmail.com davidcousens49 at gmail.com
Sun Mar 27 23:50:59 EDT 2022 

Arthur,

The properties themselves will be recorded as asset account and the mortgages as
liability accounts in GnuCash and as they are generally long term assets would
not be recorded as current assets (unless you trade in properties). An account
of the form Asset:Non-current:Properties:property1 where the ":" denotes a
parent-child account relationship.

You would normally record the property values at their purchase prices in your
books until the point of future sale. There may be exceptions to this. I would
seek a local accountant's advice if you are unsure whether this is appropriate
or not. 

To enter this into Gnucash you would create a transaction debiting the asset
account for the property and crediting an Equity:Opening Balances account for
the value of the property.
 
The loan for the mortagage will be a Liability account, e.g Liability:Property1.
A common approach is to use sub-accounts of this account to record specific
details so you could use sub-accounts of this to record the initial principal
value of the loan, interest added to the loan, regular loan repayments and
additional payments above the required loan repayments (which you can redraw),
depending on your requirements for the detail.

For an existing mortgage, you could record the mortgage balance at the time you
open your books as the principal with a transaction which credits the
Liability:Property1:Principal account with the current mortgage account balance
and debits Equity:Opening Balances with the same amount and then record future
interest accumulation and payments in the respective accounts. 

Interest would credit the Interest sub account and debit an Expense:Interest
account to record the interest paid. Payments against the mortgage would debit
either the regular payment sub-account or the sub account created to record
additional payments and credit whatever Asset:Bank account they were paid from.

If you know the totals of the interest accumulated and the respective regular
and extra payments made at the time of opening the books, you could record the
original principal value as the principal in the opening balance transaction
 and then create transactions which credit the interest sub-account and debit
Equity:Opening Balances for the interest total, debit the respective payment sub
accounts for the respective payment totals with a corresponding credit to the
Equity:Opening Balances account.  This would then preserve the totals for the
interest, payments and regular and additional payments.

Hope this gives you an idea of how you could go about setting the mortgages up
but does not constitute accounting advice as to what may be most appropriate for
your jurisdiction and circumstances. 

David Cousens


On Mon, 2022-03-28 at 02:42 +0000, arthur brogard via gnucash-user wrote:
> We have two places and two mortgages already a few years in place.
> Starting using gnucash now.
> How to put the places and the mortgages on the books?
> And how to record the 'redraw' amounts we have paid in?
> 
>  
> 
>     On Monday, 28 March 2022, 02:30:16 am ACDT, 
> gnucash-user-request at gnucash.org <gnucash-user-request at gnucash.org> wrote:  
>  
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> Today's Topics:
> 
>   1. Re:  Report - Income Statement - Layout problem
>       (Carl-Kensaku HERBORT)
>   2. Re:  Report - Income Statement - Layout problem (Liz)
>   3. Re:  Report - Income Statement - Layout problem
>       (Adrien Monteleone)
>   4. Re:  Report - Income Statement - Layout problem (john)
> 
> 
> ----------------------------------------------------------------------
> 
> Message: 1
> Date: Sat, 26 Mar 2022 23:58:16 +0100
> From: Carl-Kensaku HERBORT <it at digiene.ch>
> To: gnucash-user at gnucash.org
> Subject: Re: [GNC] Report - Income Statement - Layout problem
> Message-ID: <01221b84-d5f9-b804-dfdf-5df0d8503f1b at digiene.ch>
> Content-Type: text/plain; charset=UTF-8; format=flowed
> 
> Hello,
> 
> That's great news ! Big thanks to the developers !
> 
> My next income statement report is not due for a year (or 3 months at 
> earliest).
> 
> But I will test it with my current one as soon as the 4.10 version comes 
> to Ubuntu (or if it takes too long, I will download it manually) and let 
> you know if it works on my end.
> 
> Have a nice week-end !
> 
> Best regards
> 
> Carl-Kensaku HERBORT
> DIGIENE
> Case postale
> CH-1002 Lausanne
> Suisse
> 
> +41 (0) 21 320 22 66
> 
> Le 26.03.22 ? 13:09, Adrien Monteleone a ?crit?:
> > Carl-Kensaku,
> > 
> > It looks like the fix has been implemented for v4.10 due out tomorrow.
> > 
> > I just finished testing Chris's fix and so far it seems to do the trick.
> > 
> > Your P&L/Income Statements should line up now regardless of the account 
> > depth or the length of account names.
> > 
> > Regards,
> > Adrien
> > 
> > On 3/23/22 10:32 AM, Carl-Kensaku HERBORT wrote:
> > > Hello,
> > > 
> > > Yes, I know all that. I love doing bash scripting.
> > > 
> > > But thanks for taking the time to explain (might benefit someone else 
> > > too).
> > 
> > _______________________________________________
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> 
> ------------------------------
> 
> Message: 2
> Date: Sun, 27 Mar 2022 11:07:09 +1100
> From: Liz <edodd at billiau.net>
> To: gnucash-user at gnucash.org
> Subject: Re: [GNC] Report - Income Statement - Layout problem
> Message-ID: <20220327110709.745bfa0c at billiau.net>
> Content-Type: text/plain; charset=US-ASCII
> 
> On Sat, 26 Mar 2022 23:58:16 +0100
> Carl-Kensaku HERBORT <it at digiene.ch> wrote:
> 
> > But I will test it with my current one as soon as the 4.10 version
> > comes to Ubuntu (or if it takes too long, I will download it
> > manually) and let you know if it works on my end.
> 
> Ubuntu seems to be very slow getting updated Gnucash versions, building
> it yourself would be worthwhile and should be much less than 3 months.
> 
> Liz
> 
> 
> ------------------------------
> 
> Message: 3
> Date: Sat, 26 Mar 2022 21:35:19 -0500
> From: Adrien Monteleone <adrien.monteleone at lusfiber.net>
> To: gnucash-user at lists.gnucash.org
> Subject: Re: [GNC] Report - Income Statement - Layout problem
> Message-ID: <t1oih8$or4$1 at ciao.gmane.io>
> Content-Type: text/plain; charset=UTF-8; format=flowed
> 
> And there is always the Flatpak. So if you aren't comfortable with 
> building, it is a bit easier to install.
> 
> Since freeze on Ubuntu 22.04 Jammy has already happened (release 
> targeted to 4/21/22), I doubt it will include GnuCash 4.10, lucky if it 
> is 4.9.
> 
> You *might* be able to get a special request through for 4.10 to 
> whomever the package maintainer is, but that might be out of their hands.
> 
> Regards,
> Adrien
> 
> On 3/26/22 7:07 PM, Liz wrote:
> > On Sat, 26 Mar 2022 23:58:16 +0100
> > Carl-Kensaku HERBORT <it at digiene.ch> wrote:
> > 
> > > But I will test it with my current one as soon as the 4.10 version
> > > comes to Ubuntu (or if it takes too long, I will download it
> > > manually) and let you know if it works on my end.
> > 
> > Ubuntu seems to be very slow getting updated Gnucash versions, building
> > it yourself would be worthwhile and should be much less than 3 months.
> 
> 
> ------------------------------
> 
> Message: 4
> Date: Sat, 26 Mar 2022 20:08:34 -0700
> From: john <jralls at ceridwen.us>
> To: Adrien Monteleone <adrien.monteleone at lusfiber.net>
> Cc: gnucash-user at lists.gnucash.org
> Subject: Re: [GNC] Report - Income Statement - Layout problem
> Message-ID: <2FE69639-8F28-4F39-90F7-1CB074124C96 at ceridwen.us>
> Content-Type: text/plain;    charset=us-ascii
> 
> On the subject of flatpak, some users have reported problems with webkit
> displaying reports since the Gnome41 runtime was updated to WebKitGtk 2.36.0
> earlier this week, see https://bugs.gnucash.org/show_bug.cgi?id=798486 <
> https://bugs.gnucash.org/show_bug.cgi?id=798486>;. The project lead has given
> me a couple of suggestions that I'll include in the 4.10 flatpak build
> tomorrow, and if those don't work there's a workaround in the bug report. 
> 
> Regards,
> John Ralls
> 
> 
> > On Mar 26, 2022, at 7:35 PM, Adrien Monteleone <
> > adrien.monteleone at lusfiber.net> wrote:
> > 
> > And there is always the Flatpak. So if you aren't comfortable with building,
> > it is a bit easier to install.
> > 
> > Since freeze on Ubuntu 22.04 Jammy has already happened (release targeted to
> > 4/21/22), I doubt it will include GnuCash 4.10, lucky if it is 4.9.
> > 
> > You *might* be able to get a special request through for 4.10 to whomever
> > the package maintainer is, but that might be out of their hands.
> > 
> > Regards,
> > Adrien
> > 
> > On 3/26/22 7:07 PM, Liz wrote:
> > > On Sat, 26 Mar 2022 23:58:16 +0100
> > > Carl-Kensaku HERBORT <it at digiene.ch> wrote:
> > > > But I will test it with my current one as soon as the 4.10 version
> > > > comes to Ubuntu (or if it takes too long, I will download it
> > > > manually) and let you know if it works on my end.
> > > Ubuntu seems to be very slow getting updated Gnucash versions, building
> > > it yourself would be worthwhile and should be much less than 3 months.
> > 
> > _______________________________________________
> > gnucash-user mailing list
> > gnucash-user at gnucash.org
> > To update your subscription preferences or to unsubscribe:
> > https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > If you are using Nabble or Gmane, please see 
> > https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
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