equity fund accounts
sunfish62 at yahoo.com
Sat Jan 8 14:03:10 EST 2011
Please note that I Am Really Not An Accountant, but ...
I'm pretty sure you're misusing the term 'equity' here. Equity (as I understand it and read about it) in accounting land is "the value of a business or property that remains after claims or expenses have been deducted." (Costa, Carol. Alpha teach yourself accounting in 24 hours, 2nd ed., p. 10).
In other words, an accountant generates transactions to Equity on a periodic basis, in a process known as Closing the books. I don't think you're doing that, but I could be wrong.
As for your paycheck, I assume that it actually gets deposited in some kind of back account; if so, then the transaction should reflect this by putting the money into an Asset account for that bank account.
I suspect that you are trying to keep track of both your business books AND your personal books in one file, which from an accounting perspective is less than ideal. There was a thread about this recently, with Types Who Know These Things saying that you really need to separate your business books from your personal ones.
--- On Sat, 1/8/11, Marilyn Graves Kimple <mgkimple at yahoo.com> wrote:
> From: Marilyn Graves Kimple <mgkimple at yahoo.com>
> Subject: equity fund accounts
> To: gnucash-user at gnucash.org
> Date: Saturday, January 8, 2011, 7:55 AM
> I have limited experience with double
> entry bookkeeping. My current accounting program has not
> been upgraded for Mac OSX 10.6 and I am having to switch. My
> old program allowed me to designate an equity account as a
> "fund", meaning I can make deposits or withdrawals and roll
> over funds from month to month, unlike income and expenses.
> For example, at the end of the month I can debit any
> 'profits' to an expense account ("accruals"-- I may be
> misusing the term) and divide the credit among several
> equity accounts I have set up. I can also deposit a check in
> a bank account and credit it directly to an equity account.
> Could I do this in gnucash, and what would I need to do to
> set it up?
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