Accounting question
andrewrost3241981
andrewrost3241981 at gmail.com
Tue Jan 22 22:26:26 EST 2008
Hi,
I have a question about accounting using gnucash. I set up the program and
all of my accounts. The question I have involves my checking sub-account, a
sub-expense account for medicine, my asset account and my equity account. I
transfered $19.72 from my savings account to my checking account to pay for
some medicine. Afterwards my equity and my assets were still equal. Then
when I wrote a check for my medicine, I transferred the money from my
checking account to an expense account for medicine. After this transaction
my assets decreased and my expenses increased. However my equity stayed the
same. If equity is "net worth", shouldn't my equity have decreased? I have
no liabilities, so shouldn't my assets and equity be equal? I know that
assets does not alway equal equity, but since I have no liabilities I would
think they would be the same. In this case, shouldn't my assets and equity
be equal?
Thanks.
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