S
semi-ambivalent
Hi all, got a newbie's question.
Let's say I value my house at $100.00 in my accounting software (as an
opening balance). We have just completed some renovations that
certainly increased its value, and, even in this market, its sellable
price. The cost of the renovations are tracked as expenses but where
would the estimated increase in 'sale value' go? Just to balance the
transaction I've place the increase in a Balance Adjustment account
but shouldn't it really go as an Equity amount which I could adjust to
reality once the house is sold? I base the 'value' of the house on a
number the mortgage holder says it's worth; however inaccurate that
might be
thx!
s-a
Let's say I value my house at $100.00 in my accounting software (as an
opening balance). We have just completed some renovations that
certainly increased its value, and, even in this market, its sellable
price. The cost of the renovations are tracked as expenses but where
would the estimated increase in 'sale value' go? Just to balance the
transaction I've place the increase in a Balance Adjustment account
but shouldn't it really go as an Equity amount which I could adjust to
reality once the house is sold? I base the 'value' of the house on a
number the mortgage holder says it's worth; however inaccurate that
might be
thx!
s-a