[GNC] How to treat a sale which involves more accounts?

[Boniforti Flavio]

Hi Chris.

Thanks for your input - it seems cumbersome to me, adding accounts for each
instrument I buy. Nevertheless, in my accounting ignorance, I think I
understand it and it looks very nice and detailed.
I might try this next time I buy some instrument indeed!

Thanks,
F.

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Am Mi., 25. Sept. 2024 um 01:35 Uhr schrieb Chris Miller via gnucash-user <
gnucash-user at gnucash.org>:

> Hi Folks,
>
> Pardon the interruption; I'm breaking into the middle of this
> conversation, so please forgive me if I misunderstand or repeat something
> that has already been discussed.
>
> I believe the discussion is recording the acquisition of musical
> instruments and the occasional sale and how to account for that. I
> recommend an asset account, "Instruments", with a sub account for each
> instrument, which records the book value of each instrument. Remember the
> book value is the cost to acquire and *deploy* an asset, which would also
> include maintenance, so I would enter splits for "repairs", or "tuning", or
> "travel" anything else you might do that costs you. When it comes time to
> sell, you need to write off that asset and calculate the gain or loss on
> sale and apply that to "income".
>
> Purchase:
> Instruments:Flugelhorn                  $2,000
> Instruments:Expense:Travel              $150
> Instruments:Expense:Repair              $50
> Instruments:Expense:Maintentance        $25
> Visa Card                                       $2,225
>
>
>
> Several years later, add another split
> Instruments:Expense:Tune-upTravel       $75
> Cash                                            $75
>
>
> The above activity is one transaction, that added a split as necessary,
> and maintained the book value of the instrument, which would now be $2,225
> + $75 = $2,300
>
>
>
> This is how you would record the sale for $3,500
> Cash            $3,500
> Flugelhorn              $2,300 (Write off the asset, you no longer own it)
> Gain on Sale            $1,200 (credit to income, This could, of course,
> be a "Loss on Sale" which would debit income.
>                                 If different instruments are taxed
> differently, then that could appear here, as well,
>                                 but tax is not typically an expense)
>
>
> I hope I understood the problem and didn't just make a fool of myself
> answering a question nobody is asking.
> --
> Chris.
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