How to record house sale in Quickbooks Online

Question

My wife and I recently sold our house, and I'm trying to record this sale in Quickbooks Online (we use QBO for our personal/family finances). We had several deposits made to our bank account (most on one day, one deposit made almost 4 weeks earlier), and had several withdrawals from it, as well as other expenses deducted before being deposited into our bank account. We had a mortgage which was paid off.

If our buy price was $250k mortgage was $200k and the sale was $500k, I know in QBO we have to a) remove the house asset of $250k, b) remove the mortgage liability of $200k, and c) record the gain from the sale, which would be $250k (500k sell less 250k buy). We also need to record the other expenses (city tax, lawyer fees, bank fees). Lawyer fees and city tax was removed before being deposited, the bank fees were taken from our account.

How would we record this? Bank Deposits:

• 200k
• 242k
• 5k
• 50k (made approx 4 weeks earlier)

(total of $497000 deposited)

Withdrawals:

• 200k (mortgage)
• 500 (bank fee)
• 100 (another bank fee)

(total of $200600 withdrawn)

Deductions:

• $2000 (lawyer fee)
• $1000 (city taxes)

(total of $3000 deducted before deposit into our bank)

How do I go about doing this in QBO? We own no other property, and there is no purchase to follow at this stage.

Answer 1

This type of transaction is called managing your account, as it is the selling of an asset. Get your QuickBooks account, log in and go for the company menu. Further, go and click on the Make General Journal Entry tab. Move further to the Account column and you will get the option of adding your bank account where the sale is recorded. The total amount is actually debited and hence add the total of $497000 in the debit column. Following this, you can add the total deduction of $3000.

On the third row, enter the fixed asset- Home and add the respective amount of $200600.

To show this withdrawal in the lists menu, choose charts of accounts and create Owners Draw Account and submit this withdrawal along with the check number.