What is "Expense: Adjustment"?

[Rudi]

Hi,

 >> There are of course other sorts of adjustments.

I haven't needed to do it yet but I thought I'd need
to do an adjustment if say .....

I went out with 100 dollars .. got so drunk I can't
remember everything and came one with only 10 dollars.

I can only account for 60 dollars.

Therefore Adjustment = deposit $30 for drunken stupor
and withdraw from Assets:Cash in Wallet.

Sounds funny a bit but I'm for real.

Cheers.
Rudi.



Mike or Penny Novack wrote:
>> Hello,
>>
>> I'm new to this list. 
>>
>> My version of GnuCash came pre-installed with a number of different accounts, and one of them was an expense account called "Adjustment." I don't really understand what purpose this account was intended to serve. Anybody know?
>>
>> I searched the documentation and the archives, but was unable to find an explanation.
>>
>> I'm running GnuCash 2.0.5 via X11 on Mac OS 10.4.11. 
>>
>> Thanks,
>> Gabriel
>>
>>  
>>
>>     
> An accounting question not a GnuCash question, so you wouldn't find an 
> answer in the GnuCash documentation or archives. The "introduction to 
> accounting" provided is elementary, covers just the basic concepts of 
> "double entry bookkeeping", not all topics you would eventually need to 
> know. You can ignore the adjustment accounts until such time as you find 
> yourself in a situation where you need one (you'd then be asking "how 
> the heck do I enter THIS transaction") or you could look in some 
> "Accounting 101" books in the index to find topics on "adjustment".
>
> But I'll give you an example. Suppose that in 2008 you received a rebate 
> on one of the expenses you paid in 2007. How do you suppose you would 
> "book" that? It's a reduction of 2007 expenses but the books for that 
> year have been closed. If you had a great many rebates coming in for 
> specific expense accounts, you might have a "rebates" for each of them, 
> but more likely rebates are rare enough that a single expense 
> "adjustment" account would be more sensible.
>
> There are of course other sorts of adjustments.
>
> Michael
>
> Michael
>
>