General Journal

[Derek Atkins]

Hi,

Michael Hendry <hendry.michael at gmail.com> writes:

> As a non-accountant, I started to use a book-keeping program in the
> 90s without knowing anything about double-entry, because I'd started
> selling software in a small way, and needed to keep track of
> invoicing, while also managing my personal budgeting.
>
> I learned by trial and (a lot of) error, and eventually realised that
> I was going to have to learn about double-entry book-keeping. I bought
> an "old-school" book, and went through all the paper exercises, until
> I had sufficient knowledge and experience to stop me making (so many)
> errors.
>
> If I understand it correctly, what's called the General Ledger in
> GnuCash (GC) is identical in function to the General Journal in a
> paper accounting system, except that it automatically posts the
> transactions to the appropriate accounts - a process you would have to
> do methodically by hand in a paper system.
>
> If you're insistent on using the General Journal method in a
> computerised book-keeping system, it's supported by the General Ledger
> in GC. The price you pay in doing it this way is that you have to
> specify at least two accounts for the distribution each time you make
> an entry. I find it more natural when entering a batch of transactions
> - for example from the counterfoils in my cheque-book or from a pile
> of credit card receipts - is to open the relevant source account and
> make the entries through that. The end result is the same, but the
> risk of operator error is reduced.

GnuCash enforces double-entry accounting.

GnuCash provides multiple methods of entering transactions, but due to
the power of computers it saves you time because you only have to enter
it once and GnuCash will properly post the transaction everywhere it
needs to be.  You can enter it from the General Ledger (Tools -> General
Ledger) and supply all the debit and credit accounts you wish.  Or you
can enter it from one of the accounts, and also supply the same
information.

Unlike Quicken, GnuCash treats Income and Expense accounts the same as
Asset and Liability accounts.  This means you can enter transactions
from those just as easily as you can enter them from your Bank Account
Register or the GL.  Or even using the Transfer Dialog.

However, to the OP: You're welcome to be beholden to your ink-and-paper
archaic entry methods, but I can assure you that NOWHERE will you find a
computer program (paid or gratis) that will require you to enter your
transactions multiple times like you need to do with pen-and-paper!  The
whole power of using a computer program is "enter once" technologies,
GnuCash included.

Good luck in your quest, and make sure you tell the guardian your actual
favorite color.

> Michael

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available