GnuCash vs. Quicken

[Rich Shepard]

On Wed, 4 Dec 2002, Boyd Kelly wrote:

> I'm just in the process of evaluating gnucash as well.  I was just
> searching the internet for some kind of table like you describe.  
> 
> Could you email me that?

Boyd, et al.:

  When I started my business I knew nothing about accounting. So, I bought a
high-school-level, soft-covered book called "Accounting Made Easy". It
answered all the basic questions; my accountant answers the tough ones.
Anyway, the basis for everthing is that is referred to as the "T-account"
that's the basis for all accounting (current corporate scandles aside):

	Assets = Liabilities + Capital

or,

		Assets     Liabilities + Capital
        	________________________________
                	|
	         Debits |  Credits
        	        |

  There's the "T". So, since the two sides have to balance (debits =
credits), everything follows from this. This is why Asset accounts are
debited to increase their balance and why Liability (including Expense) and
Capital (including Equity) are cedited to increase their balance. From this
comes my crib sheet tables (look above):

		Asset Accounts
          ---------------------------
           Beg. Balance |
            Increases   |  Decreases
                        |


	   Liability & Capital Accounts
           ____________________________
                        |
            Decreases   |  Increases
                        |

  There's the basic accounting equation. These are what appear on the
balance sheet. On the other hand, the profit and loss statement is more
specific: income versus expenses:

            Revenue (income) Accounts
           _____________________________
                        |
            Decreases   |  Increases
                        |

                Expense Accounts
            ____________________________
                        |
            Increase    |  Decreases
                        |

  This should help you initially set up the opening balances in all of your
accounts. After that, gnucash puts the amounts in the proper column for each
transaction.
                 
HTH,

Rich

Dr. Richard B. Shepard, President

                       Applied Ecosystem Services, Inc. (TM)
            2404 SW 22nd Street | Troutdale, OR 97060-1247 | U.S.A.
 + 1 503-667-4517 (voice) | + 1 503-667-8863 (fax) | rshepard@appl-ecosys.com
                         http://www.appl-ecosys.com/