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bsas
Level 1

Increasing owner's equity in a building monthly after mortgage payment (long term liability)

Hi all:

I am a newbie to QB and need support figuring out how to apply the principal paid on a building mortgage towards an owner's equity in the building.

I know how to deduct the principal payment from the long-term liability. What I need to figure out is how to "move" that principal payment to a journal account for the building owner, showing the equity in the building, without reducing the total long term liability owed. Is this possible?

 

1 Comment 1
john-pero
Community Champion

Increasing owner's equity in a building monthly after mortgage payment (long term liability)

I am lost as far as what you are trying to accomplish. You cannot pay down principal and not reduce liability. Just the act of paying down debt increases an owner's equity in anything. The difference between book value and loan liability is curreny equity, not counting depreciation.

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