account transition to new year

[Enrique Barahona Ramos]

Thanks guys for your help,
I can see now that I could expect gnucash to show losses for 2005 so 
long my expenses were higher than my income during this two months. The 
only reason my checking account was not showing red numbers is the 
"positive" balance it carried forward from last year. As a rookie I 
guess one has to get used to think of oneself as a mini-company, with 
period profit and losses, etc.
Still, it's not quite clear to me what the purpose of the equity account 
is then. Is it not supposed to reflect the net wealth?
At what point do you transfer money to it and in what fashion (from what 
account?)
Cheers

Kiko