thanks Stephen so it can be 2 cases
1. Interest re invested: * Cr: Income: Interest Earned and Dr: CD Account 2. interest non re invested * Cr: Income: Interest Earned and Dr: Bank: Bank Account in case of penalties , you should point the penalties to the same Income: Interest Earned account to show the net earnings. Saludos Cordiales Murugan ________________________________ From: Stephen <rilesthemtobeli...@gmail.com> Sent: Monday, January 16, 2023 2:32 PM To: Murugan Muruganandam <m.muruganan...@hotmail.com>; Gyle McCollam <gmccol...@live.com>; gnucash-user@gnucash.org <gnucash-user@gnucash.org> Subject: Re: [GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry Some clarification: Murugan, I did earn interest on the CD throughout most of 2022 and showed it as earned interest in the CD account transactions and also in an earned interest transactions account. On 1/15/2023 4:54 PM, Stephen wrote: Interest is accounted for as income per CD account. The way I ended up doing it allows me to see how much interest I have earned by each and all accounts and the interest penalty and principal penalties are noted as to which account they were applicable but I do not track the penalties account by account (because the penalty is for closing the account -- a one time event). On 1/15/2023 2:59 PM, Murugan Muruganandam wrote: stephen one inquisitive question. did you receive any interest on the CD at all earlier and if so how did you account it Saludos Cordiales Murugan ________________________________ From: gnucash-user <gnucash-user-bounces+m.muruganandam=hotmail....@gnucash.org><mailto:gnucash-user-bounces+m.muruganandam=hotmail....@gnucash.org> on behalf of Stephen <rilesthemtobeli...@gmail.com><mailto:rilesthemtobeli...@gmail.com> Sent: Sunday, January 15, 2023 5:38 PM To: Gyle McCollam <gmccol...@live.com><mailto:gmccol...@live.com>; gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> <gnucash-user@gnucash.org><mailto:gnucash-user@gnucash.org> Subject: Re: [GNC] Certificate of Deposit Early Withdrawal Penalty Account Entry 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...@live.com> > <mailto:gmccol...@gyleshomes.com>email > > ------------------------------------------------------------------------ > *From:* gnucash-user > <gnucash-user-bounces+gylemc=gmail....@gnucash.org><mailto:gnucash-user-bounces+gylemc=gmail....@gnucash.org> > on behalf of > Murugan Muruganandam > <m.muruganan...@hotmail.com><mailto:m.muruganan...@hotmail.com> > *Sent:* Sunday, January 15, 2023 11:17 AM > *To:* Stephen > <rilesthemtobeli...@gmail.com><mailto:rilesthemtobeli...@gmail.com>; > gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> > <gnucash-user@gnucash.org><mailto: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><mailto:gnucash-user-bounces+m.muruganandam=hotmail....@gnucash.org> > on > behalf of Stephen > <rilesthemtobeli...@gmail.com><mailto:rilesthemtobeli...@gmail.com> > Sent: Sunday, January 15, 2023 4:30 AM > To: gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> > <gnucash-user@gnucash.org><mailto:gnucash-user@gnucash.org> > Cc: gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> > <gnucash-user@gnucash.org><mailto: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. > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.