[GNC] Dealing with escrow account

[Michael or Penny Novack]

On 11/1/2023 5:05 PM, Anthony Della Cioppa wrote:
> I set up two saving account, one taxes, one for insurance and my one for my Lian. When that gets paid I pull it from the corresponding savings account. Would that be wrong?

You can THINK of like a "savings account", an involuntary savings 
account, similar to one you might have set up to deduct X form your 
paycheck and have it automatically deposited in that savings account.

BUT -- why not learn to think of it more properly. Bank accounts aren't 
the only sort of assets under "current assets"  (liquid, and available 
to you). However in this case, an escrow account isn't "liquid". You 
can't take money of it until the mortgage is ended (you would then get 
back any balance remaining). However you perhaps have other asset 
accounts of this type. For example, you may have potential taxes 
withheld. If so, why not create under assets "escrow accounts" and there 
you could put the mortgage escrow account, federal tax withholding, 
state income tax withholding, etc. Notice they are similar in that you 
can't get money back (any remaining balance) until after your taxes have 
been filed. So in the same sense, an "escrow" account.

Michael D Novack

PS -- BTW, these are not really gnucash questions. Not how do I do using 
gnucash to keep the books but how do I do it no matter how I am keeping 
standard double entry books.