[GNC] Entering my real estate and mortgage?

[R Losey]

One exception might be investments, particularly if you need to track the
"buy" and "sell" price for tax purposes.

Thus when I switched from Quicken to GnuCash, I started with opening
balances, but on some of my investments, I  went back and put in previous
transactions.  All one has to do in that case is to adjust the opening
balance in such a way that it is correct when you start with GnuCash.

On Sun, Sep 29, 2024 at 3:11 PM Boniforti Flavio <boniforti.f at gmail.com>
wrote:

> Thanks Patrick.
>
> I understand that accounting is quite a broad subject matter and that
> there's not really a "right/wrong" answer to (basic) questions. I
> appreciate the different proposals to "solve" my questions and I have
> step-by-step learnt to deal with some factors and understood some decisions
> (on how to register a specific type of transaction).
>
> As I'm doing this for my personal finances, to have a view on where my
> assets, liabilities and debts are, I don't have any regulations to adhere
> to (I'm not a business) when doing my "personal bookkeeping".
>
> I tend to first search in the GC official documentation and when that
> information is not answering 100% of my doubts, I revert to this list.
>
> For example, the last thing I realized and memorized is the fact that
> having opened my books on 31.12.2023, I'm not going to add any transaction
> before that date. :-)
>
> F.
>
> https://www.instagram.com/boniforti_music
> https://soundcloud.com/boniforti_music
> https://bonny-j.bandcamp.com
>
>
> Am So., 29. Sept. 2024 um 22:02 Uhr schrieb Patrick James via gnucash-user
> <
> gnucash-user at gnucash.org>:
>
> > Boniforti,
> >
> > I am not a maintainer/moderator of this list.
> >
> > The challenge with accounting questions is the accounting standard being
> > used. For someone who is new to accounting, it seems as though there
> should
> > be one "right" or "best" answer, but often the "right" or "best" answer
> is
> > situational, and depends on factors such as the organization and
> accounting
> > standard being applied. Even then, goals and objectives might differ, and
> > thus when there are options, the "best" choice is a management decision.
> >
> > If someone asks, "How do you personally do this..." then you avoid the
> > challenge, but then you may not be so certain of what went into the
> > decision the person made.
> >
> > Someone might say, "Here is how I account for this given transaction..."
> > or "Here is how I would account for a transaction if I were in your
> > situation...", and that may be helpful for you. After gathering up a
> bunch
> > of data, analyze it, and then the way to get best advice for your
> situation
> > is to take your information to a professional who can and will represent
> > you.
> >
> > In summary, there are major problems with getting accounting advice on
> the
> > internet, and following poor advice could be very costly in the future.
> >
> > > On 09/29/2024 11:41 AM PDT Boniforti Flavio <boniforti.f at gmail.com>
> > wrote:
> > >
> > >
> > > Hi Stan - I know this is a GC mailing list and not an accounting one.
> > This
> > > is simply my best way to learn something and get helpful information.
> If
> > > these kinds of questions are OT here, then please excuse me and I'll
> > search
> > > somewhere else for information.
> > >
> > > Thanks to everyone replying to my initial question, even though I
> didn't
> > > reply to every single email in this thread.
> > >
> > > F.
> > >
> > > https://www.instagram.com/boniforti_music
> > > https://soundcloud.com/boniforti_music
> > > https://bonny-j.bandcamp.com
> > >
> > >
> > > Am So., 29. Sept. 2024 um 01:06 Uhr schrieb Stan Brown (using GC 4.14)
> <
> > > stan+gc at fastmail.fm>:
> > >
> > > > On 2024-09-28 14:07, Boniforti Flavio wrote:
> > > > > I would enter it as follows (let's assume the real estate total
> cost
> > is
> > > > > 500k):
> > > > >
> > > > > Assets:Fixed Assets:Real Estate - increase 300k
> > > > > Liabilities:Loans:Mortgage Loans: - increase 300k
> > > > > Assets:Fixed Assets:Real Estate - increase 150k (downpayment)
> > > > > Assets:Current Assets:Checking Account - decrease 150k
> (downpayment)
> > > > > Assets:Fixed Assets:Real Estate - increase 50k (reservation)
> > > > > Assets:Current Assets:Checking Account - decrease 50k (reservation)
> > > >
> > > > You do realize this is an accounting question, not a GnuCash
> question,
> > > > right? But there is a GnuCash feature you may not be aware of.
> > > >
> > > > I'm not sure why you are contemplating three transactions with a
> total
> > > > of six splits, when it's all logically one transaction. You wouldn't
> be
> > > > getting this mortgage if you weren't buying this property, or buying
> > > > this property without this mortgage or "reservation" (a Swiss
> > > > real-estate term I don't know). I believe that entering them as one
> > > > transaction would be more logical, and faster too:
> > > >
> > > > Assets...Real Estate: increase (debit) 500K (property value)
> > > > Liabilities...Mortgage Loans: increase (credit) 300K
> > > > Assets...Checking Account: decrease (credit) 150K (down payment)
> > > > Assets...Checking Account: decrease (credit) 50K (reservation)
> > > >
> > > > If you're doing this in an account register, you may need to click
> the
> > > > Split button at the top to open enough fields to make this entry.
> > > >
> > > > Stan Brown
> > > > Tehachapi, CA, USA
> > > > https://BrownMath.com/
> > > > _______________________________________________
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>

-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8