Net Assets again

Linas Vepstas linas@linas.org
Wed, 5 Dec 2001 16:29:26 -0600


On Tue, Dec 04, 2001 at 11:55:30PM +0100, Lars Burgstahler was heard to remark:
> Hi,
> 
> and thanks for the help I got with my last question. However, I'm still 
> confused about Net Assets. New example:
> 
> I create a completely new file and chose "Common Accounts" as a base for my 
> file in the druid. All my accounts are empty!
> 
> Now I get 200,-EUR from my parents. O.k. the money must come from somewhere 
> and it comes from Income->GiftsReceived and it must go somewhere, so it goes 
> to Assets->CurrentAssets->CashInWallet. First question: is that correct?

yes.

> But now I got a Net Asset of 400,-EUR 

yes, you now have 400 eur.

> and a gain of 400,-EUR. 

yes, because you are 400 eur richer than you were last month.


> Sorry, but I don't get it. Any help would really be appreciated.

'assets' is what you have at any instant in time.
'income' is how things change over time.

--linas


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