Equity wrong?

[James Kerr]

On 29/01/2012 17:59, MAD King wrote:
> So that means every time a expense or income is added it will be added
> to the equity too?
>
> i.e. if I got $200.000 income and $100.000 expenses the equity will be
> $300.000?
>

No. Income increases equity and expense reduces equity. So $200.000 
income and $100.000 expenses would increase equity by the net amount, 
$100,000 (but this is not reflected in the Equity Account until you 
close the books). Run the Balance Sheet report (Reports - Assets & 
Liabilities - Balance Sheet) to see your actual equity and how it is 
changed as a result of income and expense transactions.

Jim

P.S. Please always reply to the list.