Opening the books with a Loan

Pablo Francesca rshgeneral at
Wed Nov 11 03:13:58 EST 2009

Suppose a business starts with zero assets. Suppose they only have a loan for X dollars  to start.  This is obviously a liability.  How would they open their books in GnuCash?

I've considered the following: In Opening Balances, decrease equity by X and credit (increase) a liability account for X.  This would mean that Assets would be zero, Liabilities would be X and Equity would be -X. 

Okay, looks good so far to me.  Perhaps I'm missing something obvious in accounting  in the next part. I run a balance sheet report and it tells me that Total Liabilites & Equity = 0.   Shouldn't it be X or at least -X?


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