hi folks,
I'm looking at using wave accounting to run the ledger for my fixed unit property trust. I'm looking for some advice on what accounts to setup for the starting balances of the ledger.
The FUT issued 100 units @ $3000 per unit (i.e. $300k) to purchase land for $100k and construction of $200k.
Question #1
I'm trying to get a feel for what the names of the accounts i should be using for the initial issue.
Question #2
With the initial issue, i'm unsure which accts to DR and CR. I think i have three initial transactions:
#1 - Unit issue (DR equity account? liability of the trust to the unit holder)
#2 - Purchase of units by unit holder (CR equity acct, maybe called surplus capital? that the building construction will draw down on)
#3 - Purchase of the land (DR surplus cap, CR land liability account?)
Any help / advice appreciated.
-nat
I'm looking at using wave accounting to run the ledger for my fixed unit property trust. I'm looking for some advice on what accounts to setup for the starting balances of the ledger.
The FUT issued 100 units @ $3000 per unit (i.e. $300k) to purchase land for $100k and construction of $200k.
Question #1
I'm trying to get a feel for what the names of the accounts i should be using for the initial issue.
Question #2
With the initial issue, i'm unsure which accts to DR and CR. I think i have three initial transactions:
#1 - Unit issue (DR equity account? liability of the trust to the unit holder)
#2 - Purchase of units by unit holder (CR equity acct, maybe called surplus capital? that the building construction will draw down on)
#3 - Purchase of the land (DR surplus cap, CR land liability account?)
Any help / advice appreciated.
-nat