General Journal

[cgw993 at aol.com]

Like I said if getting people to use the more ethical free software means
making clones of proprietary software, then I am all for it.  I did not
realize that this would be what GNU was doing or what they had to do.  I
support it, but at the same time I do not have a need for quickbooks version
of bookkeeping because in the long run that is will cost me time and money.
If it works for you, or if you think it works for you, then great.

"archaic" "ink and paper" 

-----Original Message-----
From: Derek Atkins [mailto:warlord at MIT.EDU] 
Sent: Thursday, August 08, 2013 7:57 AM
To: Michael Hendry
Cc: cgw993 at aol.com; 'GnuCash Users List'
Subject: Re: General Journal

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

> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

-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