Dear all

I would be grateful if you could help me by teaching what are the account to be posted for these transactions.

My brother and I (sharing equally) buy house for 39750 USD which needs to be paid in 3 intallments. We have to pay 17250/- 11250/- 11250/- as 1, 2 and 3rd instalments respectively.

23.03.2008 Register house 39750/-
23.03.2008 pay 1st install 17250/- paid by me

23.06.2008 2nd installment to be paid
23.09.2008 3rd installment to be paid.

Anyone could help me posting entries for these transactions?

Thanks a lot

I admit to being a bit uncomfortable answering this, cause individuals buying houses don't generally go around making accounting entries. They would be more concerned with figuring out the cost basis and tax consequences and such things like that.

So it just sounds odd to be asking how to post entries for you and your brother buying a house. And, those payments would presumably include interest of some sort.

But if you're actually looking for how a business would make entries for this, and if we ignore interest, then you'd debit the house (asset), credit cash for the down payment of 17250, and then the balance due is a credit to a note payable.

When each of the future payments is made, you debit it back out of notes payable and credit the cash paid.

If it's actually something else you needed, you need to define what you mean by "entry."

Thanks Morgaine.

The share from each partner yet to be received can be posted as below?

Dr A (me) 2625
Dr B 19875
Cr Receivable 22500

Quote:

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Originally Posted by snehithan

Thanks Morgaine.

The share from each partner yet to be received can be posted as below?

Dr A (me) 2625
Dr B 19875
Cr Receivable 22500

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I'm sorry, but I don't understand what you are trying to do with this entry. Are A & B your drawing accounts? And if so, it looks like you're removing money due to the company by taking it off your capital balances? Did the company make a payment on your behalf?

I guess I just don't get what's going on here. Who actually is buying the house, and is there a company involved? i.e. are you buying as individuals, or are you buying this as a partnership together for some purpose? (e.g. investment property)