loan mortgage/bank account/building
Kimportefeuille
Member Posts: 4
1) I have purchase 100 000$ house
2) I have mortgage 80 000$
3) I have deposit 20 000$ to purchase a house
4) Every month I need to pay 965$ ( 500$ interest + 465$ principal)
5) I have a bank account #1. to receive monthly rent 1000$
6) I have a credit line account #2 to pay mortgage.
Every month : account #1 transfert fund 1000$ to credit line account# 2 to pay (965$)
Q1. how do I set this situation, and show the asset house, Liabilities mortgage diminishing every month and interest fee.
Q2. how to separate principal reimbursement and the interest fee in the account #2.
thank you
1
Comments
Hey there @Kimportefeuille
We at Wave support are not accountants so I will leave that to the pros, however with that being said I have moved your post to a more visible spot in our community, under the accounting technical support page. A lot of accountants are scouring these pages and have given a lot of great insight into how to handle these kinds of transactions in Wave. Good luck!
I hope they can give me some advices .
Thank you
I basically have the exact same questions. There are a couple threads that touch on this out there but none are very satisfying in their explanations. Someone lease help!
@Kimportefeuille and @gerbablo,
Here you go
Based on your facts you would:
Debit Building 100000
Credit Mortgage Payable 80000
Credit Owner Equity 20000
(To post purchase of building)
This is assuming the 20k came from you personally. Here in the US you would expect an amount allocated to land. So for example 85k building 15k land
Point 5 - If you are not attaching your banking then you would debit cash account 1 and credit rental income.
Point 6 - Transfer - Debit Cash account 2 and credit cash account 1
Payment of the loan - Debit mortgage payable 465 debit interest expense 500 credit cash account 2 965