Flavio, Does the Reservation Fee form part of the value of your apartment or is this a fee or commission paid to a real estate agent? If so then this is an expense rather than a contribution to the capital value of your property. Assuming it is a fee charged for services rendered, it does not add to the value of the property and is an expense incurred in the purchase of the property. In that case, I would record the purchase as follows:
Asset:Fixed Assets:RealEstate increase (debit) 500K Liability:Loans:Mortagage Loans increase (credit) 350K Assets:Current Assets:Checking Account decrease (credit) 150K Assets:Current Assets:Checking Account decrease (credit) 50K Expenses:RealEstate:Fees andCommissions increase (debit) 50K either as a single transaction or two or three separate transactions where they took place on separate dates. E.g. Downpayment might be recorded at one date as Asset:Fixed Assets:RealEstate increase (debit) 150K Assets:Current Assets:Checking Account decrease (credit) 150K and the final settlement at another date as: Asset:Fixed Assets:RealEstate increase (debit) 350K Liability:Loans:Mortagage Loans increase (credit) 350K Assets:Current Assets:Checking Account decrease (credit) 50K Expenses:RealEstate:Fees and Commissions increase (debit) 50K If the 50K is not a fee but does increase the value of the property then the Expense account would be replaced with the Asset:Fixed Assets:RealEstate account in the above. Unless you need to preserve the detail above, you could record it as opening balances for the Asset:Fixed Assets:RealEstate account and the Liability:Loans:Mortagage Loans account with the balances at the date you opened the books but in this case the transfer account will be Equity:Opening Balances and not your checking account Asset:Fixed Assets:RealEstate increase (debit) 500K Equity:Opening Balances increase (credit) 500K Liability:Loans:Mortagage Loans increase (credit) xxxK Equity:Opening Balances decrease (debit) xxxK where xxxK is the balance of the loan at 31.12.2023 If you enter the transactions prior to 31.12.2023 then you will have to adjust the opening balances to reflect the changes in equity and you would need to record the loan payments and interest expenses that have occurred since the purchase to arrive at the values at 31.12.2023. It is possible to do this, but is a bit tricky. David Cousens On Sat, 2024-09-28 at 23:07 +0200, Boniforti Flavio wrote: > Hi. > > I am sure somebody can help me validate my understanding on how to > add/enter my real estate and my mortgage correctly into GC. > > 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) > > If the above is correct, there's another question. I started using > GnuCash > this year and put the opening balances of all my accounts dating back > to > 31.12.2023, but I bought my apartment back in 2018. If I look at it > now, I > would have a huge negative balance on my checking account (because > the > money was spent in 2018 but I have the opening balance from > 31.12.2023). > Should I just add another "opening balance" in my checking account > which > equals both the downpayment and the reservation fee? > > Thanks, > F. > > https://www.instagram.com/boniforti_music > https://soundcloud.com/boniforti_music > https://bonny-j.bandcamp.com > _______________________________________________ > 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. _______________________________________________ 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.
