Common journal entries

Simon Michael edited this page Apr 20, 2018 · 7 revisions

Example hledger journal entries for various kinds of transaction.


2017/1/26 market
  expenses:food    $10

Tracking a mortgage

2019/01/01 Buy House
    Assets:House                                      500,000.00

2019/02/01 Mortgage Payment
    Liabilities:Mortgage                                1,000.00
    Expenses:Interest:Real Estate                         833.33
    Assets:Cash                                         -1833.33

2019/03/01 Mortgage Payment
    Liabilities:Mortgage                                1,002.00
    Expenses:Interest:Real Estate                         831.33
    Assets:Cash                                         -1833.33

2019/03/01 Zillow Price Estimate
    Assets:House                                                 = 505,000.00
    Equity:Unrealized Gains


Invoicing entries are different for accrual basis or cash basis accounting. Large companies use accrual basis, individuals and small companies typically use cash basis.

Accrual basis

Send an invoice. This is the taxable event:

2018-04-16 * (2018-001) SuperCompany invoice
    Revenue:Software Development                        $ -2420.00
    Assets:Accounts Receivable:SuperCompany              $ 2420.00

Receive payment:

2018-04-26 * (2018-001) SuperCompany payment
    Assets:Accounts Receivable:SuperCompany             $ -2420.00 = $0
    Assets:Checking                                      $ 2420.00

Cash basis

Invoices aren't normally tracked in cash basis, so we're using unbalanced postings to track them here. Send an invoice:

2018-04-16 * (2018-001) SuperCompany invoice
    (Assets:Accounts Receivable:SuperCompany)             $2420

Receive payment. This is the taxable event. Also: estimate the corresponding tax, and save that amount in a subaccount so there'll be money to pay taxes:

2018-04-26 * (2018-001) SuperCompany payment
    (Assets:Accounts Receivable:SuperCompany)            $-2420 = $0
    Revenue:Software Development                         $-2420
    (Liabilities:Tax:2018)                                $-420
    Assets:Checking:Estimated Tax Savings:2018             $420
    Assets:Checking                                       $2000
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