Accounting advice: No longer tracking an account

[Mike or Penny Novack]

On 10/3/2015 6:53 PM, David T. wrote:
> I have a general accounting question to ask. I have been tracking an account for my daughter, who is no longer a minor. Now that she is on her own, I no longer need to track this account. I am not sure about how to remove the account from GnuCash.
>
> Obviously, deleting the account would throw off other accounts in the books. I could simply hide the account in the Chart of Accounts, but that doesn’t seem right. I could zero the balance, but I am not sure which account I would zero it to.
>
> I would welcome suggestions on how best to handle this.
>
What KIND of account it it? Try to describe what you were doing. Which 
account to zero it to matters.

Some examples:
1) You were tracking an account of monies you were paying out on behalf 
of your daughter, and you needed to be able to report on this. Now that 
she is no longer a minor, you are neither required to make these 
payments nor report them:
ans: After the end of the reporting period (the last time you need to 
report this expense, you can hide the account if you want). Even if you 
didn't do a "close the books" it wouldn't have appeared with a non-zero 
balance in a subsequent "Income Statement" (aka P&L, Revenue Statement, 
etc.). If you did do a "close the books" it WOULD have been zeroed out 
(to equity).

2) This is an asset account for monies that were hers but that legally 
had to be considered yours until her majority.
ans: In effect, money leaving your possession. Do you have an account 
for "gifts"? Again, once the balance is zero, won't show on your balance 
sheet if not sowing zero balance accounts. You can hide.

The only reason this seems to be a problem is the transition from pen 
and ink on paper accounting to computerized. In the old days, the new 
accounting period began new (physical) books. The old journal and ledger 
books weren't thrown out. Yes, accounts might have been in them not 
appearing in the new (physical) books.

Michael