GnuCash and GST/VAT

[ghaverla@freenet.edmonton.ab.ca]

Hi.  I'm a new GnuCash user (or is that a Gnu GnuCash user?),
and like most of you, not an accountant.  I did download the
entire mbox for gnucash-user, and skimmed over all 63k lines.

In the past, I used a workbook (A Record of my Home-Based
Business (With Provision for GST)) to help summarise my
years activities.  In attempting to convert over to GnuCash,
I am entering data from a previously finished year.  At some
point, I actually need to deal with GST.  Everything I sell
will be subject to this tax, but I get a credit for any
GST I pay.  As far as sales and expenses goes, GST fits
nicely into things (although, it would be nice if the GST
amount in the GST sub-account was calculated based on the
sale/expense in the parent account).  Where I've run into
confusion is when it comes to capital assets.  If I buy
a piece of capital for $100 (and pay $7 in GST), I need
to keep track of the $100 for depreciation and potential
capital gains "down the road".  The $7 that I paid in
purchasing the capital expense is just another expense.
Because this $7 is NOT capital, I guess I need to manually
enter it into an expense account specifically for GST on
capital?  Also, here capital falls into different "classes"
(depreciation schedules).  How should one keep track of
this stuff?

In case I haven't asked enough questions yet, up to this
point things have been running at a loss, and I don't see
any change in the near term.  Do I need to set up an account
to make loans from in order to keep track of this?  (I.e., as
the owner I am loaning money to the business.)

Thanks.  It looks like a good program.

Gord

Matter Realisations     http://www.materialisations.com/
Gordon Haverland, B.Sc. M.Eng. President
101  9504 182 St. NW    Edmonton, AB, CA  T5T 3A7
780/481-8019            ghaverla @ freenet.edmonton.ab.ca
780/993-1274 (cell)