[GNC-dev] tb, gnc or me? my trial balance is wrong and I think it is gnc not me

Wm wm_o_o_o at yahoo.co.uk
Mon Feb 11 04:54:34 EST 2019

On 10/02/2019 22:52, David Carlson wrote:
> Wm,  Where does unrealized income fall into tb if there is no price in the
> database on the closing date for one or more security or currency accounts
> because it was not sold?

Essentially it doesn't occur, it is just a number of something if you 
aren't using Trading Accounts.

The TB isn't about the *value* of stuff, it is about what you paid for 
it at a time and how much of it you have at a point in time or over a 
point in time.

The Balance Sheet is about the value of stuff at a point in time.

The Income Statement is about how you got to a value over a specific 
period of time.

The TB is worthless or pointless if it "double dips" into either of 
those major reports remits.


Consider this tx

Assets:Cash -100
Assets:XYZa +100

Cash is real money in your home currency
XYZa is an unlisted investment

What your TB should show wrt XYZa is that you have 100 home currency 
units (usually called money) worth of it.  That never changes unless 
something else happens.

Consider this tx

Assets:Cash -100
Assets:XYZa +4 shares @ 25 each

Unless someone else is buying and selling those XYZa shares they are 
only worth what you paid for them at best, your TB should reflect that 
you have 4 XYZa shares not guess what their value is.

Am I explaining this well or not?

The Balance Sheet allows you to put a value on stuff

The Income Statement says how you got there

The Trial Balance should say what you actually have and what actually 
happened rather than what you think you have and would like to have 
happened.  Why?  Because it is good accounting.


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