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
gmccol...@live.com <mailto:gmccol...@gyleshomes.com>email
------------------------------------------------------------------------
*From:* gnucash-user
<gnucash-user-bounces+gylemc=gmail....@gnucash.org> on behalf of
Murugan Muruganandam <m.muruganan...@hotmail.com>
*Sent:* Sunday, January 15, 2023 11:17 AM
*To:* Stephen <rilesthemtobeli...@gmail.com>; gnucash-user@gnucash.org
<gnucash-user@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....@gnucash.org> on
behalf of Stephen <rilesthemtobeli...@gmail.com>
Sent: Sunday, January 15, 2023 4:30 AM
To: gnucash-user@gnucash.org <gnucash-user@gnucash.org>
Cc: gnucash-user@gnucash.org <gnucash-user@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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