[GNC] gnucash-user Digest, Vol 230, Issue 18

[Chris Skudder]

   The simplest way is to just consider the purchase price to be $95,000,
   not $100,000.
   (If you really want to capture the seller credit, you "could" record
   the purchase price at $100k, and create another "split" in the
   transaction, $5,000 credit to a new account, for instance,
   "Income:credit for repairs.")
   Chris
     __________________________________________________________________

   From: [1]gnucash-user-request at gnucash.org
   Sent: Saturday, May 7, 2022, 11:00 AM
   To: [2]gnucash-user at gnucash.org
   Subject: gnucash-user Digest, Vol 230, Issue 18

------------------------------

Message: 11
Date: Sat, 7 May 2022 11:00:05 -0400
From: M [3]<M_Stagl at hotmail.com>
To: [4]gnucash-user at gnucash.org
Subject: [GNC] Account for Seller Credit when purchasing a home
Message-ID:
        [5]<MW4PR04MB7460D540D47F5148454840C290C49 at MW4PR04MB7460.namprd04.prod.o
utlook.com>

Content-Type: text/plain; charset=UTF-8; format=flowed

I am still learning double-entry accounting, and I need a little help.

I recently purchased a home, but the price was reduced during
negotiation and a seller credit was applied at closing.

Agreed Purchase Price: $100,000
Seller Credit for Repairs: $5,000
Actual Purchase Price: $95,000

When I add this asset, I am stumped.? When I increase the asset by
$100,000 and decrease other accounts for cash and loans of $95,000, that
all makes sense.? But how do I account for the $5,000?? I see it as an
unrealized gain... instant equity provided by the seller. But I need to
debit an account with this amount, so it shows an unrealized gain of
-$5,000.

Should I simply just increase the asset by $95,000 and not account for
the credit?

I know I am missing the big picture.? Can anyone point me in the right
direction?

Thanks to all,

Mike

References

   1. mailto:gnucash-user-request at gnucash.org
   2. mailto:gnucash-user at gnucash.org
   3. mailto:M_Stagl at hotmail.com
   4. mailto:gnucash-user at gnucash.org
   5. mailto:MW4PR04MB7460D540D47F5148454840C290C49 at MW4PR04MB7460.namprd04.prod.outlook.com