I'm really confused when it comes to setting up a loan for a car. Can someone explain it to me in very simple terms?
Does it get setup as an asset or a liability? Any help someone can give me would be greatly appreciated.
Thanks, Rich

Please don't post the same question in two different threads.

Have you read the appropriate section in the manual? https://docs.kde.org/trunk5/en/extragea ... ml#idm1191 If you have any specific questions or suggestions for that section, I'll be glad to update the wording.

As was answered in the other topic, the account representing the value of the car is an asset account. The loan account is a liability account. You borrow the money, and (as part of creating the loan account) transfer all you borrowed into the car account. You then decrease the value of that account as the value of the car decreases over the years. You also spend time paying off the loan, reducing it's value eventually to zero.

So the asset account should be negative and the liability account should be in the positive?
I'm am still confused even after reading the manual for loans...Sorry I don't understand things easily.
My loan for the car is $1303.00
Thank you for your patience and time.
Rich

Simply add a transfer transaction from the loan to the asset account. Don't worry about the sign. In your case though, the asset needs to be positive in the end.