Accounting Question
Michael T. Garrison Stuber
garrisonstuber@bellsouth.net
Sat, 26 Jan 2002 00:10:12 -0500
Okay, while we're on the subject of the finer points of double column
accounting, could someone please explain to me what (for personal finances)
the point of an equity account is? I know it is used for establishing
opening balances, but I fail to understand why it gets subtracted out (I
think) on some of the reports. Help. Most everything else (income,
expense, liabilities, and assets) makes perfect sense to me, but when I
start wrestling with this one, it makes my brain hurt. What does it mean
to me that I have this big negative value in my equity account? It's not
like I owe the money to a share holder -- it's my money. I don't use the
account for anything else either, so it seems doomed to stay there forever.
A clear explanation would be much appreciated. Thanks!