Year end (was Re: Reconcilation of accounts)

[Tim Frost]

Keith,


On Mon, 2012-05-28 at 08:29 +0100, Keith Royall wrote:
> I have just sent a post with questions about how the year end is handled
> (Question 1), 

When you are happy that all transactions for the year have been
recorded, the "Close Book" tool can be used to generate two new
transactions, one each for your income and expense [or debit and credit,
if you use those terms] accounts.  Each of these transactions will have
a split for each non-zero account of the relevant type that sets the
balance of that account to zero. Each of these transactions will be
balanced with a split that goes into an equity account of your choosing.
In my case, I have an equity account named 'Retained Earnings', with a
separate sub-account for each financial year.  

You need to specify the date for the close-off to be either the last day
of the old financial year, or the first day of the new financial year,
and ensure that it catches all of the transactions for the applicable
year, and no transactions that belong in other years.

Note that the 'close book' tool does not affect accounts for assets or
liabilities (cheque account or credit card, etc), because the balance in
those accounts are not affected by closing the books :)

> and how to reconcile a bank statement when it doesn't show a
> payment I have made (Question 2).
> 
> Please ignore question 2 as I have just discovered where I went wrong.  I
> didn't enter the month end balance shown on the bank statement. I used the
> register balance.
> 
> regards
> 
> kthroyall

Tim

-- 
Tim Frost <timfrost at xtra.co.nz>