Accounts Not Balancing

porus pavri pdpavri at
Sun Jun 30 12:48:05 EDT 2013


I have recently started using Gnucash for my home accounts wef 1 Jan 2013.
 I am a qualified accountant by profession so I am conversant with all
things debit and credit.  I would like to raise the following queries:

On the Accounts Tree page, when I perform the following arithmetical
operation as at 31 May 2013: Total Assets - Total Liabilities - Opening
Equity - (Total expenses - Total income), the result is not zero.  To check
further, I added the amounts of the sub-accounts under each main account,
and this total was agreeing with the amount of each main account.
 Similarly, when I ran the Balance Sheet report, the identical difference
exists.  I have a few foreign currency bank and investment accounts, one in
GBP and the rest in US Dollar.  I suspect this difference is partly because
of the exchange rates used by the system in producing the local currency
amounts every month-end.  I can see the following exchange rates in the
"Price Editor" screen:

[image: Inline images 1]

When I was inputting my opening balances, I had entered relevant exchange
rates for USD and GBP as at 1 Jan 2013.  Later, since I had US Dollar
transactions in the months of Feb, Mar and Apr, I had used the Transfer
window to "fetch rate", which is perhaps why it shows "user:xfer-dialog".
 As at 31 May 2013, I wanted to revalue the GBP investment since rates have
changed significantly.  So I went to Price Editor and added a new GBP rate,
as shown above with a date of 31 May 2013.  I think the difference in the
Balance Sheet report is mainly due to this change.

Can you please explain how the system converts foreign currency amounts
into local currency every month, in cases where the above schedule of
exchange rates exists in the system, ie in the Price Editor.

When I run the Balance Sheet Report every month-end, there is generally a
small amount lying in the report under the heading Unrealised Gains
/Losses.  The Balance Sheet Report is always out of balance by this amount.
 How does the system calculate this, and why does it not create the
relevant double entry, so that the Balance Sheet report always balances.

*Best Regards

*Porus Pavri*
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