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

Krokodill Geena krok.geena at gmail.com
Mon Jan 28 10:07:09 EST 2013


On Mon, Jan 28, 2013 at 1:23 PM, Dustin Henning <The00Dustin at gmx.net> wrote:
>         I think you would create a stock account and sell shares from it,
> giving you income.  This would show the number of shares as a negative
> number, and may not be proper from an accounting standpoint (since you
> didn't short-sell shares of some other stock), but it would be simple.
I actually tested this and it looked really wrong :)
I will have a short position (- shares) and this is going offset the
funds received. BTW, we actually like to use gnucash for rel
accounting and not just toy around with it. :)

I attempted to resolve this little "problem" by setting up following accounts:

Equity:Share Capital*

(* Share capital or capital stock (US English) refers to the portion
of a company's equity that has been obtained (or will be obtained) by
trading stock to a shareholder for cash or an equivalent item of
capital value. For example, a company can issue shares in exchange for
computer servers, instead of purchasing the servers with cash.)

Assets:Current Assets:BusinessAccount (renamed form Checking because
nobody uses cheques over here and I never actually seen one in my
life, except in a american movie)

Everything started to look good but there is still one small problem.
We know, how much cash each one of us has deposited as initial startup
capital (and received a share in co) but there is no way to track how
many total "shares" are actually issued.

What if I set up a Assets:Investments:XYZ and enter number of shares
with 0 EUR per share?
Will this start causing problems down the road and mess up our
reporting at some later date?

Cheers.




> If you needed to turn around and track the equipment as capital, I imagine you
> would be getting way outside of what GnuCash is meant to do (issuing shares
> probably is, but the workaround is easy).
>         Dustin




>
> -----Original Message-----
> From: gnucash-user-bounces+the00dustin=gmx.net at gnucash.org
> [mailto:gnucash-user-bounces+the00dustin=gmx.net at gnucash.org] On Behalf Of
> Krokodill Geena
> Sent: Monday, January 28, 2013 03:49
> To: gnucash-user at gnucash.org
> Subject: small starting business - initial sell of shares, capital raised
> and related questions
>
> Hi
> 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
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