This situation requires 2 transactions.The first sells the land and takes the asset off your books. The second sets up the Loan Receivable and puts the new asset on your books. Both transactions need to be entered in the same cash journal.

1. Dr cash journal with Land Sale (Land account) at $310,000. (Since your cost is $256,000 you will properly record the gain in the sale transaction.)
2. Cr cash journal with Loan Receivable (new Loan account) at $217,000. (This sets up the loan amount with the balance due from sale.)

After both transactions are entered, the cash journal reflects the net deposit of $93,000 - actual cash received from sale.

After both transactions are entered, you need to set up your Loan Receivable automatic entry. Create the payor and interest account to be used when payments are received. Then set up the Loan Receivable:

1. Select Transactions | Loan/Mortgage Receivable
2. Enter payor set up for payments
3. Complete the Loan/Mortgage Receivable screen

Thereafter, when the loan payment is received, FN will track the principal and interest payments.

See the FN Reference Guide, or Help screen for more information regarding setting up a loan receivable.