Difference in Equity and Assets (checking a/c)

[Michael Hendry]

> On 14 Sep 2015, at 08:54, Hossain <contacthossain at gmail.com> wrote:
> 
> Hello, I m very new to GnuCash, I need some clarifications.I m confused about Equity.
> I have 1000$ in checking a/c (parent-Assets). I make a transaction at Income
> for 200$ (Assets:Current Assets:Current Account) but
> it doesnt increase my-  opening balance(parent-Equity). IT only increases checking a/c (parent-Assets)
> to 1200$. As far as I knw, Equity is what I have in total, then why is this 200$ not added to Equity?

Welcome, Hossain.

This is an accountancy question - I don’t think you fully understand double-entry bookkeeping.

(I’m not an accountant, I hasten to add).

Equity represents your contribution to the business whose accounts you are keeping (and perhaps contributions of business partners).

When you make a double-entry of income arriving in your Current Account (= US Checking Account), you must record the source of this income in one of your Income accounts - for example, “Income:Salary" or "Income:Bank Interest".

Michael