Journaling Interest on Liabilities in Double-Entry Personal Finance

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Tea Leaves

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Published on January 16, 2021 5:30:21 PM ● Video Link: https://www.youtube.com/watch?v=V5YIlMrk5tc

Duration: 5:30

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In an earlier video, one of the commenters asked: “How do you take interest rates on liabilities into account?”

This is super-easy, and is another example of why double-entry bookkeeping is so widely used: there are very few “special cases”. Accounting for almost anything is just applying the rules you already know, and making sure you are categorizing things on the correct side of the accounting equation. Today, we move away from GnuCash, and show how to do this in Beancount, a plain text accounting program.