A simple End-of-Period question

[rwh]

davidxgreen at netscape.net wrote:

>I have a very simple question regarding the closing of accounts at the end of 
the accounting period.
>  
>
>I have been running GnuCash for a couple of months in a trial manner and want 
to tranisition to full use for the next financial year (July 03 - Jun 04).
>
>How do I close off the accounts and begin afresh in the new accounting year? 
That is, roll-over the balances but clear out the transactions?
>  
>
-- 

Somewhere in one of the gnucash manuals or posts etc, the question of how to 
handle eoy summaries was approached  like so:

Create the following accts.:

assets/income/income_summary
assets/expenses/expense_summary
assets/currentassets/grand_summary

these accts contain a single entry for each income/expense category closing 
entry eg

assets/income/income_summary:widget_sales		+$$$$$$
this is the closing $$ balance in widget_sales on 31.12.jjjj

you will no longer be able to create a P&L statement dated 31.12.jjjj as the 
accts will have a 0$ balance. workaround in "options" by setting the 
reporting period to 01.01.jjjjj - 30.12.jjjj. (that seems to work ok)

create similar closing xsactions for all income and expense accts.
now, close these two accts out to:
assets/currentassets:grand_summary
and then
close out grand_summary to the equity account.

by creating:

assets/income/income_summary
assets/expenses/expense_summary

one creates, in effect, a summary transaction register.

seems to work for me. what do you think?

robert






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