Assets - Liabilities is not equalling Equity. Equity account is stuck.

Ian K ik522000 at yahoo.co.uk
Tue Nov 18 05:54:08 EST 2014


The change to the 'Equity' is shown by the expense account, which is a kind
of equity account.

On one side you have Assets - Liabilities: 400.33 - 1,803.14 = -1,402.81
On the other side you have Equity - Expense + Income: -1,175.53 - 227.28 + 0
= -1,402.81

So you have increased the negative equity by the amount of expenses.
If the Equity account is your Opening Balances, then that actual account
will be 'stuck' if you don't post any more transactions to it.



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