Selling a house

[Fanch]

Hello,
I sold a house and I want to be sure that I write everything in a good way.

What I have in Icash is :
House (value 1,63 M)
Bank_account

Should I do the following transaction:
Type: sell (försäljning in swedish, don't know what it is in ICash english)
From; House
To; Bank_account
Value: 1,63 M
Who: the_guy_that_bought_it

Best regards

Fanch

 

[stanbusk]

I believe you should create the house first as an asset. You can do that by using a startup account as the origin account. Once the house exists in your accounting then you can sell it by using the corresponding asset account as the origin and your bank as the target.

 

[Fanch]

Thank's
the house already exists

 

[Fanch]

Actually
I was thinking about another solution. As the payment is splitted in two parts (10% in advance, 90% when all the paper are signed and they get the key).

Accounts

Assets
House1: 1 630 000
bankaccount
Bank Account 1

Account
Expense
House_selling_exp
Income
House_selling_inc

day 1

Type       From                            To					Amount
Income   House_selling_inc       Bank Account 1		163 000

Day 2

Type       From                            	To				Amount
Income   	House_selling_inc       	Bank Account 1		1 467 000
Sell	    	House 1				House_selling_exp    1 630 000

 

[Fanch]

But if I do like this, it will affect the resultat in a wrong way as it will be on both side.
So the best perhaps to take the shortcut that we were speaking in the two first messages even if I don't think that it is the cleanest solution

 

[stanbusk]

Actually you can't enter a transaction from Expense to Income, a bank has to be used

 

[Fanch]

So actually, what I am doing is more or less to transfer the value from one asset account (house ) to a bank account (money money). It is more or less an internal transaction?

But is it like this in real life?

 

[stanbusk]

In real life, yes, you convert an asset, real estate into money. Of course you could create more transactions, create an account for the buyer, a transaction from the buyer to your bank account and a transaction from the asset to the buyer, then it will be 100% like in real life.

 

[Fanch]

Hello,
Actually I saw a difference if I do in the simplified way.
If I do a transaction from my assets to my bank account, it does not appear as a income. The "square" remain grey and not blue.

If I do like in your last post, the transaction from the assets to the buyer is a red square, as I have to create an account for the buyer and it is an expense account.
I got them in my result sheet an expense for the house selling and an income for the house selling.
I thought that I should just see an income and an expense in the profit and loss summary.
Whereas I would think that I should have:
- only an income in the profit and loss (i.e I get +1,5 Millions)
- no difference in the balance as what disappear from the assets house will appear in the bank account.

Francois