Equity Question
Maf. King
maf at chilwell.net
Tue Aug 18 10:21:01 EDT 2009
On Tuesday 18 August 2009 07:49:20 ooby wrote:
> Hi All,
> I'm new to this so possibly this is a really stupid question. I have set
> up all my accounts etc. I have an Equity account with a sub-account called
> Opening Balance with $500 in it (this is an example). The $500 is from a
> few different Asset Accounts.
>
> I went and entered that I paid my Credit Card of $200 from one of my Asset
> Accounts. The Asset accounts now show that I have $300 but the Equity
> account has changed at all, it still shows $500, the original amount.
>
> My understanding of this is that the Equity should also show $300.
> If I open the Equity account it shows the opening balances and isn't
> reflecting that one of the Asset accounts is now minus $200
>
> I have reconciled everything as well
>
> Am I missing something or not getting it?
>
> Thanks
>
> ooby
Hi ooby,
I think that the equity you are looking for is calculated in the (net worth)?
report. The "Equity" sub-tree in GC is not dynamically updated with the
changes made to Income, assets etc. accounts.
Think of the "Equity" sub-tree as a place to keep things like opening balances
(or retianed earnings etc.) which need to be included in the accounting
equation definition of equity, but don't fit as assets or liabilities.
Any help, or just more confusing?
Maf.
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