Transfer between personal & business accounting question

[Wm...]

Thu, 26 Nov 2015 19:44:36 <5657B584.3050801 at cmail.nu>
Matt Kowske <jmk at cmail.nu> wrote...

This brings up another question I am a little confused about. I don't
have a "retained earnings" account as what I have understood from the
GnuCash docs (http://wiki.gnucash.org/wiki/Closing_Books) that closing
the books and having a retained earnings account is not needed, since
that value is automatically calculated on the balance sheet.

Given that this is the first year of business I would like to make sure
I handle this correctly as the year comes to an end so any feedback is
appreciated, thanks.

===

Create an account under your Income   tree.  Call it BLOB.
Create an account under your Expenses tree.  Call it BLOB.
Create an account under your Equity   tree.  Call it BLOB.

Produce a Balance Sheet.
Move chunks of money between them.
Produce Balance Sheets as you go along.
Repeat until you get the desired result.

That is it, really.

Equity is what you or the LLC have.  Income and Expenses are (internal 
to the LLC) ways of changing Equity.  Putting money in or taking money 
out are external ways of changing Equity.

This has been explained before.  At what point should we give up?

-- 
Wm...