close books

[Dennis Powless]

I guess I agree with the adjustments in net worth....

I don't really need to see all that much detail ie house owed and amt
owed etc... on each loan.

I just want to be able to see totals for the year etc... and not the
wild crazy numbers I am seeing now.

I think I will play around with it.

Thanks




Wed, Dec 1, 2010 at 9:28 AM, Ken Heard <ken at heard.name> wrote:
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> Phil Longstaff wrote:
>
>> Equity
>>     Retained Earnings
>>         Income
>>         Expense
>>
>> Retained Earnings is the term used for businesses.  I'm not sure if there's a
>> better term for home use.
>
> The term "retained earnings" refers to what is left to the business from
> earnings after some, maybe most of the profits have been distributed to
> its owners.  It is consequently not in my opinion a suitable term to use
> in a personal accounting system.  Instead I use the term "adjustments in
> net worth":
>
>        Net worth:
>           Opening balance +
>                Net worth adjustments for current year ±
>                        Receipts +
>                        Less expenses -
>                Asset re-evaluation ±
>                Etc ±
>           Closing balance +.
>
> If the closing balance is not a plus you are in trouble.  For example,
> is the balance owing on your mortgage more than the value of your home?
>
>> I used to be a hypochondriac AND a kleptomaniac. So I took something for it.
>
> What did you take? Did it work?
>
> Ken Heard
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