What does Net Assets mean?

Dave Peticolas dave@krondo.com
02 Dec 2001 15:31:41 -0800


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On Mon, 2001-12-03 at 15:21, Lars Burgstahler wrote:
> Hi,=20
>=20
> I just started with GnuCash and I think I understand the principle. Howev=
er,=20
> I don't quite understand the relation between the Opening Balance Equity=20
> account and the Net Assets (bar under the text/icon bar).
>=20
> My problem:
>=20
> I started a cash account with 1 EUR, at the same time an equity account w=
ith=20
> 1 EUR was created. O.k., that's where the money for the cash account shou=
ld=20
> come from.
> By now, my Net Assets were 2 EUR. My Profits BTW were 0 EUR. I don't=20
> understand this completely, as I only have 1 EUR in my pockets. Why are=20
> opening balance equities summed up into the net assets?
>=20
> Next, I opened a new cash account with 170,90 DEM (=3D87,37 EUR). A new o=
pening=20
> balance equity account in DEM was created. By now I had a Net Assets valu=
e of=20
> 89,37 EUR.
>=20
> And that's what I don't absolutely don't understand. It seems like the=20
> EUR-cash and the EUR-equity and the DEM-cash are summed up for the Net=20
> Assets, but not the DEM-equity. Why is the Net Assets not 88,37 EUR (1 EU=
R +=20
> 87,37 EUR)?

Are you sure you made the EUR-equity account an actual Equity account
in the account creation dialog? You can check by opening the Edit=20
Account dialog.

dave


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