small starting business - initial sell of shares, capital raised and related questions

[Mike or Penny Novack]

Krokodill Geena

>I need some help with the following setup
>
>1) Small business starts out with 0 EUR (all accounts are empty)
>2) "Shares" of get issued and N investors buy the shares - lets say
>total of 10 000 shares, 1 EUR per share
>3) Equipment is purchased with the money received from 2)
>
>We need to keep track of how many "shares" are issued (there will be
>more shares issued, if there is need for additional capital)
>We do not care who has how many shares - something else is used for this
>
>My question is, what is the correct way to set this up in gnugash?
>I am new to gnucash so please keep it simple but detailed enough so I
>can set up the accounts properly :)
>
>Thank you
>  
>
That isn't really a gnucash question (yet). It sounds as if you don't 
know what the opening entries would be for starting this small 
corporation were you doing the books the old fashioned way, pen and ink 
on paper. What gnucash does for you is automate the process (first enter 
transactions in "journal", the post to "ledgers"). With gnucash you 
enter from just one place and all the rest is done for you, no 
transcription errors, etc. But gnucash cannot tell you what accounts you 
need for your sort of business entity or what the transactions would be. 
You have to already know that part.

Understand? If you tell us "Here is my chart of accounts as it would be 
if doing books the old fashioned way; How do I set that up in gnucash?" 
we can help you. But if you say "what sort of accounts do I need and 
what do the opening transactions look like for a small corporation 
(where not all authorized stock is issued)" you need different sort of 
help FIRST. Get a book "accounting for the small stock corporation" or 
hire a professional. If I remember correctly, there can be all sorts of 
complications.

Michael