Accounting question

[Derek Atkins]

This really should be a FAQ.   There's Instantaneous Equity and
then there's your Equity at a point in time.  The Equity Accounts
show your Equity only at a point in time, generally the point in
time of when you started accounting, or at a future date if you
"close the books".

To get your Instantaneous Equity you should run a Balance Sheet report.

-derek

Quoting andrewrost3241981 <andrewrost3241981 at gmail.com>:

>
> 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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-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available