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You need to create an asset and a liability account to keep track of your car (asset) and your loan against the car.

1. Add an asset account for your new car.
2. Enter the first transaction with the category as Adjustment for the opening balance. In the Increase field, enter the current value of your car, that which is $30,000.
3. Create a loan/liability account for the actual loan amount borrowed.
4. Enter the first transaction with the category as Adjustment for the opening balance. In the Increase field, enter the actual loan amount.

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We recommend that you go to your asset account regularly and adjust the value of your asset depending on whether the value has increased or decreased. This is important to help you have a clear picture of your total net worth.

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