incorrect equity on balance sheet

[Mike Alexander]

--On June 2, 2009 10:00:19 AM -0400 Derek Atkins <warlord at MIT.EDU> 
wrote:

> Antonios <antoniosx at gmail.com> writes:
>
>> I added an account in British pounds on 5/11 and now I can not get
>> correct balance sheets after 5/11.  I tried searching the archives
>> but did not find anything referencing this type of error.  How can I
>> correct this?  I tried making sure I have a GBP exchange rate for
>> every day that there are transactions in this new account.  If I
>> delete the GBP account and all transactions it then works as before
>> showing a small unrealized gain from previous euro transactions in
>> other accounts
>
> It means you're not accounting for the capital gains back to USD due
> to the 'sale' of your GBP.

Or use trading accounts to deal with this problem.  See 
<http://www.mscs.dal.ca/~selinger/accounting/tutorial.html> for an 
explanation of this. 
<http://www.mscs.dal.ca/~selinger/accounting/gnucash.html> talks about 
how this is relevant to GnuCash.

-- 
Mike Alexander           mta at umich.edu
Ann Arbor, MI            PGP key ID: BEA343A6