First steps wtih Double-Entry bookkeeping

[Jeff Carneal]

On Feb 22, 2007, at 8:33 AM, Daniel Carrera wrote:

> I'm just starting out in the neat and wonderful world of double-entry
> bookkeeping. This is my first experience with GnuCash, and I have a
> conceptual problem:

Welcome.

>
> I am not starting from zero. I already have assets and I already have
> liabilities. How do I enter those?

It depends.  You can import all of your old transactions into a new  
account tree in gnucash by exporting from your old software as QIF or  
OFX.

Or you simply create a new 'Opening balance' type entry in gnucash  
and start using it as of today, you can create your own custom  
account tree and then enter a transaction of, eg, 'Opening balance ->  
1,000' with a transfer account of 'Equity:Opening Balance' or some such.

>
> For example, my largest liability is a student loan that was retrieved
> over a period of 4-5 years to pay for many courses. I've made some of
> it, and much of it remains to be paid. If I had started using  
> GnuCash 11
> years ago, I would have a long trail of university-related expenses to
> match a growing liability account. But I can't possibly recreate that
> today.
>
> How can I start my accounts book so that on "Day 1" I have $90 in my
> wallet, $2,000 in bank account A, $4,000 in bank account B and $15,000
> in a student loan?

Enter the following transactions:

                                                    Debit		Credit

Wallet:                                      90
Equity:Opening Balance                             90

Bank account:                         2,000
Equity:Opening Balance                             2,000

Student loan:                                                15,000
Equity:Opening Balance      15,000

I may have reversed the order on one or more of these, as gnucash  
calls debits and credits different things in the register depending  
on the type of account, but you get the idea.

> -- English is essentially French converted to 7-bit ASCII.

Cute :)

Jeff