`Balance' dialog box.. what is it for.

[Harry Putnam]

BOB GOODWIN <robert.goodwin2 at att.net> writes:

> "when you write a cheque, you have to allocate the money to 'something'"
>
> Where/how is this done? I don't see any place to "allocate."

Sounds like you need to read this whole thread.  I'm the noob that
started it.  gnucash is my first brush with `double entry' accounting.

You'll really need to read the first part of documentation including
`getting started'.  I'd go on and suggest that you accept the default
tree of accounts that are offered on setup.

Now as to `allocated'.  I can't say why that term is used.  I find it
confusing to.  On the Check record it is called `transfer'

If you wrote a check to me it would be addressed to me and
`transferred from'(here some call it `allocated to') your `expenses'
accounts.  (one of them if you want to get more detailed.

Double entry accounting is kind of like the way energy works.
Everthing stays balanced.  Like if you burn wood, the wood is gone but
the heat,smoke,etc are there.  They cancel each other... in accounting
it balances out to zero.

For a much better explanation see the thread here and particularly
John Sled's comments in:
Message-ID: <1091673111.4285.219.camel at phoenix>