status of accounting periods support

[Alex Weiss]

I can't speak for version 1.8 because I'm still using 1.6, but this is the way I end the year for my personal finanes:

Take all Income accounts and DEBIT their total balance as of December 31 and CREDIT Equity: Retained Earnings

Take all Expense accounts and CREDIT their balance as of December 31 and DEBIT Equity: Retained Earnings

for example  If on Dec 31 you had a CREDIT balance of $100 for Income: Salary you would DEBIT
Income: Salary $100 and CREDIT Equity: Retained Earnings $100
this is done for each income account individually

then treat each Expense accounts in the manner described above (CREDIT expenses and DEBIT Retained earnings)

when you are done, if you had a good year, you should have a positive (CREDIT) balance in Equity: Retained Earnings

Anyway, this is how a CPA told me to do it, I hope it helps. (I hope it makes sense, i need more coffee:-)

Alex

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