Journal entries for Mortgage Note Partials

[Kim Hall]

I sold a partial on a mortgage note I own.  How do I make the journal entries?  

Current UPB of note: $21,544.08

I sold 90 payments of $300.15 for $20,000.

How do I record this???

[Chris Seveney]

@Kim Hall

Ok. We did it differently so our books were different but I would not book it as a journal entry but as a sale of the asset but not close it out on the balance sheet. So you sold it for $20k which would reduce the asset side of the balance sheet and if you exceeded your basis it would move to profit and loss statement.

Then in future when you get payments it will all go the the profit and loss since you exceeded your basis