Setting up equipment assets for new business

[John Jason Jordan]

On Sun, 28 Jun 2009 06:20:29 -0400
Mike or Penny Novack <stepbystepfarm at mtdata.com> dijo:

> Cam is essentially correct. Just another example of how you have to know 
> how it would be done in traditional pen and ink on paper accounting in 
> order to understand how to use GnuCash. Just one thing to add. You might 
> not need one account per piece of machinery. What you actually need is 
> one account for everything following the same depreciation schedule (all 
> items bought in the same year that are then depreciated over the exact 
> same number of years by the same method). But keep in mind that the 
> whole purpose is to make things easiest in the long run. Even if some of 
> these were following the same schedule and could be depreciated 
> together, large (expensive) discrete pieces of machinery that might 
> subsequently have different histories might as well each have their own 
> account. Probably why Cam suggested that.

I think I will set up three Equipment subaccounts and post each with
all the items of the same economic life. 

Do I assume correctly that the offset for the debits to the Equipment
accounts will be a credit to Opening Balances - Equity?

Thanks for the suggestions.