Thanks for the note and welcome to the newsgroup.

I don't do the * Business versions, but here's the answer from my
(non-Business versions) perspective. Money does double entry accounting with
one account and one category. So, to change the value of an asset account,
enter a transaction in the asset account register that is categorized as
either income ("Investment Income : Real Estate Gains") or Expense
("Automobile : Depreciation"). In the accounting equation sense (Assets =
Liabilities + Shareholders equity) it seems this is either an increase or
decrease in shareholders equity.

Can't say how you enter than in the Business versions. Sadly, very few
Business version users help others here. Perhaps they are too busy running
their own businesses.

"NoCouth" <NoCouth[at]discussions.microsoft.com> wrote in message
news:47A036C3-8910-4141-AE0C-2D10E567CB4B[at]microsoft.com...
- quote -

Hi Dick,

I've appreciated your posts over the past year, and I'm finally taking the
plunge and "signing up" to reply and ask questions.

Regarding adjusting the value of ASSET accounts, I have been trying to
figure out what the "opposite" account should be for these adjustments. In
real accounting, it would be an owner equity account -- but in Money (I
happen to be using 07 Hm & Biz) I'm struggling with this since there is no
place to do General Journal entries, and it appears as though one can set up
or post to an owner equity account as a BUSINESS account, but this would
technically be a personal account.

You post is comically and sadly correct! Autos and other toys with engines
are typically "depreciating assets," so an occasional 5-20% reduction in the
value of these "Assets" would be appropriate... regarding real estate and
homes, which are "appreciating" assets (hopefully, at least), an occasional
INCREASE in value is likewise appropriate... but where does the opposite side
of the transaction go?

Thanks.

"Dick Watson" wrote:

- quote -

"Dick Watson" wrote:

- quote -

I should add, if you are using an Asset account for the new vehicle,

8) As soon as you've driven the new car 200 miles, enter a transaction in
the NewVehicleAssetAcct that reduces the asset value of the new car by 20%.
Compare this value to the outstanding loan balance (which includes the taxes
and the residual from the old car you financed again) in the new loan
account. Cry for a few minutes. Have a good stiff drink and try to forget
about it.

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:uNgAqBtRHHA.4832[at]TK2MSFTNGP03.phx.gbl...
- quote -

General outline, no one right answer, I don't know all the details of the
transactions, etc:

1) create some kind of expense transaction (Automobile : Payments?) in the
asset account to adjust it down to the trade in value.

1.99) if you really want to continue tracking vehicles as Assets, create a
$0 asset account for the new vehicle now. This experience highlights why
some of us do not track vehicles as asset accounts.

2) create a transaction to buy the new car. It will have these components in
splits:
Automobile : Payments $value of new car (Alternately, Transfer :
NewVehicleAssetAcct)
Taxes $value of taxes on new car
Transfer : OldVehicleAssetAcct ($value of residual of trade-in)
Other Income : Loan Proceeds Received ($value of new loan)
===
total value of cash you put into the new car less old loan payoff value ($0
you said was down payment. In this case, you can put this transaction in
just about any account. Do you have a pocket change account? That's be a
good place.)

3) create a new loan account. Note in its details that the loan is for this
car and where (account/date) to find transaction #2. (If you are going the
asset route, watch what the wizard does re. the new asset account. You may
have to go change the instructions above or the way it changes your
already-created asset account after the fact.)

4) in the account where you put transaction #2, enter a transaction to
payoff the old car. It will be a Loan Payment with these components in the
split:
Interest Expense : (whatever you used for this loan) $residual interest in
the payoff
Principal Transfer : OldLoanAcct $principal balance
===
payoff amount

5) the old asset account should be $0. Close it.

6) the old loan account should be $0. Close it.

7) The sum of txn #2 and txn #4 should reflect how much new cash you put
into the deal from that account. There will be an intermediate balance that
is not "real world" but the net of the two transactions should be.

I wish there were neater ways for several aspects of this regarding the
transfers to/from loan accounts and the interim balance not matching what
happens in the real world account. The other ways are really ugly.

"User" <User[at]discussions.microsoft.com> wrote in message
news:678F50FA-4F36-4045-B94B-59D1AD5DBA57[at]microsoft.com...
- quote -

I've got a car in Money as an asset, and an associated loan. I've never
depreciated the value of the car. It's obviously worth a lot less at the
time of trade in so I first need to adjust the depreciated value to reflect
the trade-in price. The old loan had more on it than the trade-in value.
The trade in was subtracted, and the old loan added to the financing of the
new car. No down payment was made.

So poor asset management aside, how do I get rid of the two accounts for the
old car, and generate a new asset and loan account for the new car? If I set
up the loan and asset accounts for the new car first at the actual price of
the new car, Money will more than likely miscalculate repayments when I then
transfer in the trade-in as payment to the new loan, and the old loan loan as
an increase to the new loan. Also curious as to how I record the
transactions (transfers, expenses, etc.)

So in summary I'd like to...

1. Close two accounts associated with a traded-in car (remaining loan more
than value of the car).

2. Create two accounts for the new car incorporating transfers into the new
loan reflecting the difference between old car loan and old car value.

Hope that all makes sense.