double entry and accounting equation

[Judah <milgram@cgpp.com>]

On Wed, 27 Sep 2000, Robert W. Brewer wrote:

> But when I create fresh assets and equity accounts, then transfer my
> opening balance from equity to assets, I'm left with a negative equity
> account balance.  Is this what I want?  I would think it should be 
> positive so the above fundamental equation would be satisfied.

This bothers me too.

BTW GnuCash shows "Assets" in the lower RH corner of the main window, this
appears to be the sum of all the "assets-type" accounts minus the sum of
all the "liabilities-type" accounts. This also is at odds with the
terminology in basic equation you quoted (which I've seen in every
accounting book I looked at in the bookstore). It would be nice if you did
have "assets=liabilities+equity" in GnuCash but until that happens my
solution is to stop reading accounting books.

Judah

Judah Milgram
milgram@cgpp.com
(301) 422-4626 (-3047 fax)