close books

[Dennis Powless]

I say this because the equity accounts are in the hundreds of
thousands and rising.  I don't have anywhere near that much equity in
anything.  I think the number is way, way off.

I was trying to do just that, simplify the picture.  The expense
accounts were huge numbers also, as is the income.  So, I was tying to
get them to real numbers.


Dennis

On Tue, Nov 30, 2010 at 5:44 PM, Fred Bone <Fred.Bone at dial.pipex.com> wrote:
> On 30 November 2010 at 11:43, Dennis Powless said:
>
>> I've went into each of the expense accounts and entered a zero out
>> transaction to equity:retained earnings for each year.  This, from
>> what I've been reading is similar to closing the books.  And quite
>> reversible if I ever should need to use that data for reports.  Is
>> this acceptable and will it mess things up in other areas?
>
> That is exactly what the "close books" action does.
>
>> Now, what do I
>> do about the huge equity accounts?  Do the same to those?  Zero them out
>> somehow.
>
> You don't want to zero the equity accounts. They represent your current
> position, or at least your position as at last time you closed the books.
>
> (Well, you might want to enter transfers among them, reducing some sub-
> accounts to zero, to simplify the picture, but that's not quite the same
> thing).
>
>