Canadian GnuCash user

[Mike or Penny Novack]

On 2/12/2015 2:58 PM, W Pawlowski wrote:
> Hello everyone,
>
> I am new to accounting and new to GnuCash so right now I am going through
> accounting books to catch up but also hope that this group can help me get
> up to speed. I am in Ontario, Canada and I am registered for HST.
>
> I have questions regarding purchasing parts which are then resold to my
> customers. How do I enter that into book keeping?
> I have opened new expense account - Parts Bought.
> I have also opened new liability accounts: HST Payable, HST Paid, HST Owing
> for tracking my HST obligations.
> I have just bought part, paid for it with cc, so I entered split
> transaction:
> Expenses:Parts Bought $2614.82
> Liabilities:Credit Card $2314.00
> Liabilities:HST:HST Paid $300.82
> It seems to be OK, but the balance on my credit card seems to be on the
> positive side, is that normal? Or what am I doing wrong?
>
Your problem is much more the "new to accounting" than "new to gnuash". 
We can help you with the "how to do using gnucash" (as opposed to pen 
and ink on paper) but not qualified to teach you the fundamentals of 
accounting, the "what to do" as opposed to the "how to do".

I'm not sure whether even to begin (you are buying inventory for resale, 
why do you think that is an "expense").

You are in business so have to get this right or you will be in trouble. 
If you are trying to do this without professional assistance, at least 
get yourself a typical "Accounting 101" text.

Michael D Novack