I need to account for a property (asset) that sold. I have the Final Settlement and while I understand how the basic accounting for it would go, I am not sure what to do with the Escrow account that has money still in it in Quickbooks.
Here's my situation, how do I account for following:
Why would there be money in the escrow account? A purchaser pays earnest money to hold the deal while inspections etc are done, that money is placed in an escrow account usually. Then that money is usually applied to the purchase price, or it might be refunded, but that information will be on the closing documents.
I was talking about the Escrow account on the current loan (before it was paid off in the sale). I am wondering how to close that part out of Quickbooks with the sale of the house. But you are right, usually it goes into the funding process or is refunded later. I would need to see where that money went before I can close it out of Quickbooks.