Balance Sheets

Egbert van der Wal ewal at pointpro.nl
Sun Jan 5 04:21:02 EST 2014


If the situation is easier, the steps are also easier.
The first three steps can be replaced by the 'Tools' -> 'Close Book' option.

The rest of the description is only needed when you have liabilities or 
fixed assets that need depreciation. If you don't, you can skip this.

So, in your case, only 1 step remains (Close Book), not that hard, right?

Bye,

Egbert



op 05/01/14 08:47, Chris Bester schreef:
> Hi John
>
> Your suggestions are appreciated.  Thank you for a very comprehensive reply.
> However, rather complicated.  We only have one form of income "Members
> Fees",  we have no liabilities, our only asset is money in the bank, no
> depreciation and a limited range of expenses.  Therefore, I think it would
> be much easier to create a spreadsheet and manually enter information from
> my "Income Statement" on a monthly basis.  On such a spreadsheet I can enter
> opening balances manually.  Entering the necessary formulae will do the
> calculations as I go along.
> Thanks in any case, I will put your suggestions on file as I am sure they
> will come in handy in future.  By the way, can somebody explain to me what
> the word "Equile" mean in "Balance Sheet (Equile )"?
>
> Chris
>
>   
>
> -----Original Message-----
> From: gnucash-user-bounces+chrisbester=cybersmart.co.za at gnucash.org
> [mailto:gnucash-user-bounces+chrisbester=cybersmart.co.za at gnucash.org] On
> Behalf Of John R. Sowden
> Sent: 05 January 2014 01:39 AM
> To: gnucash-user at gnucash.org
> Subject: Re: Balance Sheets
>
> On 01/04/2014 01:00 AM, Chris Bester wrote:
>> Hi There
>>
>>    
>>
>> Re:  My problem with Balance Sheets.
>>
>>    
>>
>> In order to solve my problem regarding opening and closing balances,
>> Maf and Derek suggested that I create two Balance Sheets, side by side
>> in the multicolumn report and Tweak or Message them. I have entered
>> two Balance Sheet (Equile) next to each other, because I find this
>> Sheet a better way of communicating my organisation's  financial situation
> to my committee.
>> Question; what do I do now, these two sheets are exactly the same, how
>> do I Message or Tweak the new financial year's Sheet to start all my
>> accounts from zero and my asset accounts with last year's ending
>> balances and not the same balance the previous year started with?
>>
>> Thanks for your help.
>>
>> Chris
> The are several steps that you need to take to start the new year. These are
> General Journal entries, meaning not from the checking account.
>
> Move all of the income to an "Income Summary" account.
>     Debit the income from each income account for the "old year".
>     Credit Income Summary for each of the amounts.
>
> Next Move all of the expense account amounts from the expense accounts to
> the "Income Summary" Account.
>     Debit the Income Summary account for each below amount.
>     Credit each expense account for its total.
>
> Move the difference between the two, hopefully a credit amount (profit) to
> the equity account.
>     Debit the Income Summary Account for its balance.
>     Credit the Retained Earnings account, if a corp.
>
> Next you need to deal with the assets and liabilities.
>
> Hopefully during the year, as you paid off loans, etc., you debited the
> interest to the Interest Expense account and debited the balance of the
> payment to the Liability "Truck Loan" (or whatever) account, thereby
> lowering the amount of the Liability.
>
> Additionally, at the end of each "accounting period", that is, when you
> choose to present the financial state of you organization to yourself for
> posterity, or to others, such as quarterly, you should be posting
> Depreciation, that is, reducing the value of any fixed assets as they are
> consumed, down to the Salvage Value.  You depreciate the "Salvage Value"
> when you dispose of the asset.
>
>     Credit the depreciation account for the depreciation amount from your
> Depreciation Schedule for this asset.
>     Debit the Accumulated Depreciation account by the same amount.
>
> Subtract the Accumulated Depreciation from the asset account.  That is the
> ending balance of the asset.
>
> You now would have the information needed to create the closing balances of
> the 'old year', which is the same as the beginning balances of the 'new
> year.
>
> Hope this helps
>
> John
>
>
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