Incorporation of P&L into balance sheet

[James Leone]

A Big THANK YOU to Derek who fixed the minor glich below and more 
importantly, added a very useful feature. :-)

Cheers,

James Leone


I wrote:

>
> Ok, we've actually made a lot of progress on the year end dates.  You 
> got the right idea.
>
> However,  Gnucash 1.84 will report an out of balance balance sheet, 
> but it should be easy to fix.
>
>
> Right now the balance sheet is missing  Retained Earnings accumulated 
> prior to the current reporting period.
>
>
> On the balance sheet....        Assets - Liabilities = Equity.
>
> And....                                        Equity = (Opening 
> Balances +current period profit & loss + retained earnings accumulated 
> prior to the current period)
>
> Ergo....algebraicly....
>
> (Assets - Liabilities) - Equity = 0
>
> (Assets - Liabilities) - (Opening Balances +profit & loss + retained 
> earnings) = 0
>
> (Assets - Liabilities) - (Opening Balances +profit & loss ) = Retained 
> Earnings
>
> Set your math this way, and add a line to show retained earnings, and 
> _Guess What! ---> GnuCASH will support _Accounting periods!!!!!_   :-) 
> * YOU DID IT! * :-)
>
>
> To avoid confusion on the balance sheet, you should label the balance 
> sheet dates as "reporting period."
>
> Note that I really like the flexibility of GNU cash here with regard 
> to reporting periods.
>
> Gnucash will actually be _more_ flexible then Quickbooks!!!  :-)
>
>
> On a separate issue.....
>
> If you run a profit and loss and click on a description in the profit 
> and loss, you will see a list of all transactions from the beginning 
> of time.
>
> It would be more useful if it only showed the transactions that make 
> up the total on the profit and loss. 
> After clicking on report, it would be useful to also be able to change 
> the date range in the options tab.  This feature would not be used 
> often, but would be the little extra that turned the ordinary into the 
> extraordinary here.
>
>
>
> Good job guys!
>
>
> James Leone, CPA
>
>
>
>
>
>
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