[GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry

[Stephen]

Thanks to you and Murugan I got this sorted. As usual, over-thought and 
over-wrought. Although I'm sure I could show all the changes in one 
split entry it was easiest for me to credit the interest 162.89 as one 
standalone entry first. Then I could see my way clearly to showing the 
two penalty sub-amounts totaling 1529.51. Intuitively I fairly certain I 
could have shown the interest earned among the splits all as one entry 
but I'm going to quit while I'm ahead. I just didn't want to lose the 
detail of the separate penalty amounts nor their total.  Again, many thanks.

On 1/15/2023 11:23 AM, Gyle McCollam wrote:
> I would enter this Murugan suggested. Let's say the balance of the CD 
> prior to closing on your books was $300,000.00
>  Using the amounts you have given:
>                         Debit       Credit
> Asset: Acct moved to    $298,633.38  (Closing Balance)
> Income: CD Interest                       $162.89
> Exp: Bank: Penalties          $1529.51
> Asset: CD                              $300,000.00 (Balance just prior 
> to this entry)
>
> Thank You,
>
> *Gyle McCollam*
>
> Gyle McCollam
>
> gmccollam at live.com <mailto:gmccollam at gyleshomes.com>email
>
> ------------------------------------------------------------------------
> *From:* gnucash-user 
> <gnucash-user-bounces+gylemc=gmail.com at gnucash.org> on behalf of 
> Murugan Muruganandam <m.muruganandam at hotmail.com>
> *Sent:* Sunday, January 15, 2023 11:17 AM
> *To:* Stephen <rilesthemtobelieve at gmail.com>; gnucash-user at gnucash.org 
> <gnucash-user at gnucash.org>
> *Subject:* Re: [GNC] Certificate of Deposit Early Withdrawal Penalty 
> Account Entry
> hi Stephen
>
> The entries can be input as follows.  I could not understand where you 
> are getting orphans or imbalances  if you can explain it would be easy
>
> Account Dr      Cr      Notes
> Principal       Asst: Bank Account      Asst: CD Account        $ 
> Principal amount
> Interest        Asst: Bank Account      Income: CD Interest     
> Interest earned + partial month $162.89
> Penalty Interest        Exp: Bank: Penalties    Income: CD 
> Interest     Total penalty $1.529,51
>
>
>
>
>
> Saludos Cordiales
>
>
> Murugan
>
> ________________________________
> From: gnucash-user 
> <gnucash-user-bounces+m.muruganandam=hotmail.com at gnucash.org> on 
> behalf of Stephen <rilesthemtobelieve at gmail.com>
> Sent: Sunday, January 15, 2023 4:30 AM
> To: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
> Cc: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
> Subject: [GNC] Certificate of Deposit Early Withdrawal Penalty Account 
> Entry
>
> I had a CD that I closed before it matured. The bank applied a penalty
> of 90 days interest at the CD rate. In fact the total penalty was
> figured as the sum of principal penalty of $1,366.62 and penalty amount
> paid from interest earned for the period of a partial month of $162.89
> for a total penalty of $1,529.51. The statement clearly shows a payment
> of +$162.89 and a penalty of -$162.89 and a penalty amount from
> principal of the $1,366.62.  The interest earned and penalized is a net
> $0 so I could just book the $1,366.62 as a charge to the CD account and
> as as an charge to an early withdrawal penalty account to obtain the
> closing balance on the account. But it seems to me that I should be
> booking at least 3 splits to show the interest earned account and
> interest earned penalized account and the rest of the penalty as a
> charge to the CD account but the numbers produce orphans or imbalances.
> I'm treating all entries as income items so interest earned, interest
> penalized, and a principal penalty. They are multiple entries and not
> multiple splits in the CD income account. Is this the correct way to
> book this? Some guidance would be appreciated. Thanks in advance.
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