Assets sale - a worked example (v2)

guangong · Post by **guangong** » Tue Mar 25, 2025 5:19 am

This is a refined version to accomplish the same goal from @simond
Assets - a worked example (feedback, please)

Let's continue the sale portion

In the "real" world - the sale

I sold the property for £120,000 on 21 June 2010. The proceeds eventually went towards the purchase of another property but, in the first instance, they arrived in my bank account (after a deduction of £2k in legal fees). During the time that elapsed between the dates of purchase and sale:

The property value increased by £20k

In mmex - the purchase

In the existing asset account, I create a deposit (non-asset) transaction on 2010-06-18 for £20k, with payee “the market”.

I create a withdrawal/transfer asset transaction on 2010-06-19 for £20k with payee “valuation”.

In the asset account, I create a deposit/transfer asset transaction on 2010-06-20 for £120k, with the payee “purchaser”.

I create one (non-asset) withdrawal from the asset account on 2010-06-21 of £2k, with payee “solicitor” and a non-asset transfer of £118k from the asset account to my bank account on the same date.
Again, my net worth on the mmex dashboard is correctly shown throughout the stages of the property sale: the asset value increases by £20k (I already own it, but this increase in its value is only confirmed when the sale contract is agreed with the purchaser) and then my net worth changes from consisting of a property asset plus a bank balance to just a bank balance. As in reality, the net worth only ever goes down by the amount of the legal etc fees, because the ownership doesn’t change until the purchaser pays up.

Recommended Approach:
Step 1: Disable auto revaluation via Right Click -> Edit Asset -> Change in Value to None. (this is optional)
Step 2: Manual revalue property-1 asset to £120k on 2010-06-20 via Right Click -> Add Asset Transaction -> with Type as Revalue
Step 3: Sell property-1 asset with £120k via Right Click -> Add Asset Transaction -> with Type as Sell. with payee as "purchaser" and category as "Investment: Sale" or what you prefer.
Step 4: Now, the property-1 asset would have £0 for both initial value and market/current value. and your asset account would have £120k balance.
Step 5: From your asset account, create a withdrawal on 2010-06-21 of £2k and a transfer of £118k to the bank account.
Step 6: all set now if this is an entire sale.
Step 7: If this is a partial sale, you can continue to restore auto revaluation and see your asset's growth.