how to view total for expenses subaccount

[Mike or Penny Novack]

>Correct me if I'm wrong, but I believe this is not necessarily true.
>For example, if income > expenses during an accounting period, but the
>value of your assets decreases during that period by an amount greater
>than income-expenses (as many of us have experienced during the recent
>stock market turmoil), your net worth decreases, contrary to what you
>said above.
>  
>
   No --- if income > expenses for a period then the net worth is 
increasing. But you have to do your books entirely "cash" or entirely 
"accrual", can't mix the two together. We'll use your examples.

At start of period
  Assets     = 30,000
  Liabilities = 25,000
    (net worth is 5000)
At end of period
  Assets    = 15,000
  Liabilities = 5,000
     (net worth is 10,000)
Income for the period was 5000 > than expenses. Net worth has increased 
by 5000 even though the amount of assets has decreased, the amount of 
liabilities decreased by a larger amount.

The stock market turmoil example to which you refer is the confusion 
that results when you try to combine "cash" and "accrual" accounting in 
the same set of books. You can't do that. If you are strictly on the 
cash basis then those stocks haven't changed their asset value (yet). If 
you are on the accrual basis and so taking into account their decrease 
in market value then you also have the expense "unrealized losses in 
investments".

You might find it useful, perhaps necessary, to maintain two sets of 
books, one on the "cash basis" and one on the "accrual basis". Possibly 
even more sets of book., For example one on a "personal basis" (sorry, 
but for tax purposes, the "expense" of the food you eat is not an 
expense for tax purposes). One instance of the application GnuCash can 
be used for all of the sets of books, those are simply separate files 
perhaps even kept in separate directories (file folders). What books you 
keep depends upon your needs for information, financial planning, tax 
reporting, etc.

Michael