Hello All, I have a user case for which I seek advice for both accounting principle point of view as well for posting in GNUCASH.
I receive a loan of say Rs. 1 million in current day. With the condition that it will be paid back by non financial asset at the end of the 12 months, by way of say Rs. 1.15 million worth of gold jwelery. (valuation of jaellery comprises of cost of gold and cost of making and designing jewellery) What would be accounting treatment for this transaction, as an accounting principle and in gnucash. I am thinking following in principle... Dr bank (assets) : 1 million Cr lender (liability) : 1 million Cr lender ( liability) : 0.15 mill (interest) Dr interest expense : 0.15 milllion Dr gold purchase (assets) : 0.95 mill Dr jewelery mfg expense ; 0.05 mill Cr bank (assets) : 1 mill Cr Sale (to lender) : 1.15 million Dr creditor (lender) : 1.15 million Cr jewellery ( assets) : 1 million (0.95 mill gold cost plus 0.05 mill manufacturing cost) Dr COGS (expense) : 1 million Is there any better way for accounting! A help will be very much appreciated Thanks Paras _______________________________________________ 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.
