equity fund accounts
Marilyn Graves Kimple
mgkimple at yahoo.com
Sun Jan 9 08:46:44 EST 2011
On Jan 8, 2011, at 2:03 PM, David T. wrote:
> Please note that I Am Really Not An Accountant, but ...
> I'm pretty sure you're misusing the term 'equity' here.
Actually, what I am trying to do is divide my 'equity' into sub-accounts which are really designated savings, for donations or future car expenses, or annual expenses like property taxes and insurance, for example. Then when I pay my property tax bill, for example, it comes directly out of an equity account instead of expenses.
> 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.
You may be correct, that it is an automatic process and I can't do what I want to do.
> 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.
It would ordinarily go into the bank account (asset) and an income account. My example would be special income, like a gift that I would post to my 'personal allowance' equity account, if I could set one up.
> I suspect that you are trying to keep track of both your business books AND your personal books in one file
This is my personal/household accounts. I do not have a business.
Thanks for your response.
More information about the gnucash-user