Opening a new account [SOLVED]

[Ken G.]

On 12/31/2014 07:07 PM, mshires wrote:
> Personally, I think your first entry was fine for general purposes for 
> personal use.
>
> It seems there are several ways to view this, depending on how complex 
> you want to make it.
>
> If a couple of people own a business, and one of them decides to add 
> some additional capital, say $10,000 of their own cash, the business 
> would debit cash and credit Owners Equity.  Which is what you wondered 
> if you should have done.  I guess that depends on you.  Not giving 
> accounting advice, but was it equity or "other income", as in your 
> original entry?
>
> Again, not giving accounting advice, but if you feel this isn't really 
> an equity transaction, then the gift card is like found money or other 
> income....not related to your normal "business" activity.  As others 
> said, you can create an asset account 'Kroeger Gift Card' and debit 
> that (which you did). Then, if you want to keep track of items like 
> this you could create and credit an "other income" account.   Your 
> first idea is fine to my way of thinking.  You credited your 'income' 
> account.  If you want more detail in your "income" accounts, simply 
> hierarchical your various income sources and add one for "other 
> income".  In business, other income can include found money on the 
> floor, interest income from a checking account, monies received from a 
> class action lawsuit, etc.
>
> Why one versus the other?  Depends on a LOT of factors that an 
> accountant would be best for advice .... laws vary from various taxing 
> authorities state by state, or country by country.  Are you using 
> GNUCASH to prepare your tax returns? If so, I would seek the advice of 
> an accountant....some income may be taxable, and other not, which 
> would require different accounts for reporting.  :)
>
> Personally, I think your first entry is how I would have done it, too.
>
> Mill Shires
My thanks to those who replied to my question. I think I got confused as 
to whom I should make a credit entry to, either an entry to the income 
accounts or an equity account. I guess making an entry to the equity 
account only applies when creating a new set of books. By the way, this 
is for my personal usage, not use for business.

Again, thanks.

Ken