New Report to End All Reports

[Aaron Laws]

On Thu, May 19, 2016 at 5:59 PM, Mike or Penny Novack <mpnovack at mtdata.com>
wrote:

> On 5/18/2016 8:51 PM, John Ralls wrote:
>
>> On May 18, 2016, at 7:03 AM, Aaron Laws <dartme18 at gmail.com> wrote:
>>>
>>> On Tue, May 17, 2016 at 5:22 PM, John Ralls <jralls at ceridwen.us <mailto:
>>> jralls at ceridwen.us>> wrote:
>>> The Balance Sheet report shows you net worth. You probably didn't
>>> recognize it because the accounting word for it is "equity". Recall that
>>> the accounting equation is Assets = Liabilities + Equity*, so by
>>> associativity Equity = Assets - Liabilities.
>>>
>>>
>>> When we say Assets = Liabilities + Equity, it means All Assets = All
>>> Liabilities + All Equity. This works if I include all (non-$0) assets,
>>> liabilities and equity, and do so when there are no revenues nor expenses
>>> (just after closing the books). At any other time, or in any other way,
>>> that equation doesn't hold, and even in that specific case, it's not the
>>> information I'm seeking.
>>>
>> ....]
> b) Take closer look at the balance sheet under equity. Do you not see
> there a line for which you do not have an actual account? One that has the
> amount of the net of all income and expense accounts << it will either be a
> gain or a loss >>
>
> The equation is always valid. The accounts of type income and expense are
> part of the equity side.
>
> Michael D Novack
>

Thank you for your input. Your expertise is highly valued. You're right; I
forgot that net gain/loss from the profit & loss is carried to the balance
sheet as equity because I had only selected current assets and liabilities.
The balance sheet was prepared with only those asset and liability accounts
and no income and expense accounts. The image I posted online appears to
have expired, so I attached it to this message. When I select all accounts
(including expense and income), on the balance sheet I see "Retained
Earnings", and all numbers make sense.

I think this doesn't change the original request which is to find net
current assets, but thank you for pointing this out.
-------------- next part --------------
A non-text attachment was scrubbed...
Name: balancesheet.png
Type: image/png
Size: 28606 bytes
Desc: not available
URL: <http://lists.gnucash.org/pipermail/gnucash-devel/attachments/20160520/749137c5/attachment.png>