Unrealized Losses on Balance Sheet

c-a-l c-a-l at earthlink.net
Sun Mar 14 10:31:27 EDT 2010


With all due respect, what I am trying to figure out here is how GnuCash
generates its report, so this is an issue of understanding the GnuCash
software, and NOT an accounting issue.

What I posted was NOT any transaction, but rather the results on the balance
sheet.  I did not "involve" Equity - GnuCash did that on it's own, via the
Balance Sheet report.  I am trying to understand how to uninvolve Equity, as
I agree with you from an accounting point of view.  

You are exactly right - I don't expect GnuCash to know the name I chose for
the expense account to which I attribute the losses which is the crux of the
issue.  I never put the Unrealized Loss in a transaction, but it shows up in
the Balance Sheet report.  I do not have any account for unrealized losses
in the equity section - That line item is NOT attributable to any account -
GnuCash just puts it there.  So I don't understand how I will ever get rid
of the "Unrealized Losses" line item on the Balance Sheet, since GnuCash
just puts it there.  Enter a buy of 10 shares at $100/share in 2008, and
enter a current value of $80 and you will see what I mean.

So even if I select an account to which to attribute the losses, I still
have the same issue in the Balance Sheet, except that now instead of just
one entry under "Unrealized Losses" I have two entries - I still get the
"Unrealized Losses" entry on the Balance Sheet that is not attributable to
any particular account, and I get a balancing entry of "Retained Losses," an
account that also does not exist.

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