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Purchase of property

acplus21

Hi, I need to enter a purchase of a property with deposit paid on contract signing and loan drawdown on settlement of property two months later. How do I enter these transactions in Myob Accountright?

thank

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Princess_R

Hi @acplus21,

Thank you for your post, and welcome to the Community Forum!

To manage the purchase of the property, the Spend Money and Receive Money options. The initial deposit made at the time of contract signing can be documented as a Receive Money transaction, while the loan drawdown at settlement and the actual property purchase can be recorded as a Spend Money transaction. While you can also use a journal entry for this purpose, it's advisable to consult your accountant first. This ensures that you record the transaction correctly, using the appropriate accounts for your accounting needs, and complying with tax regulations accurately.

Feel free to create a new post again if you need further help.

If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

Cheers,

Princess

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Song

Hi @Princess_R

Thanks for your reply to @acplus21. I have the same question.

I find that using Recieve Money and Spend Money is easier for me to record a purchase of property.

I am confused about using Recieve Money to record deposit made on signing contract (10% of the contract price), and again on settlement (anothe 10%).

I have created -

Asset account for the purchase, contract price; and asset accounts for stamp duty, legal etc

Liability account for loan advanced by lender

Expense account for interest

Which account (asset, liability, expense or equity) to go for deposits made? Receive Money from which account to which account?

Shall I put all entries in Spend Money against the settlement statement?

Thank you in advance.