Newbie - Need help with examples
davidcousens at bigpond.com
Sat Oct 22 20:17:28 EDT 2016
Many examples will use a checking account just because it is a common form
of asset account. You can substitute any asset account name which describes
your situation and most of the other details of an example transaction will
remain the same ( whether a debit or credit for example).
For a more detailed explanantion the Wikipedia articles on double entry
may give you more background on this. The accounting equation approach is
generally used in most modern accounting practice and is embedded in the
IFRS international standards. Wikipedia generally has fairly good articles
on any of the specific terms used by accountants so it is a good resource.
Accounting practice for businesses is generally defined by accepted best
practices, reporting requirements and legislation. The latter two components
vary from country to country around the world but increasingly are moving as
far as possible towards standardized practice.
The major account categories Assets, Liabilities, Equity, Income and
Expenses appear as top level header accounts in Gnucash. The first three
are normally referred to as permanent accounts by accountants as their
contents generally persist beyond the current accounting period. Income and
Expenses are actually temporary Equity accounts in accounting parlance as
they record the transactions in the current accounting period so that
profit/loss or surplus/deficit can be easily established for that accounting
In conventional accounting practice, the temporary account balances are
transferred to a permanent Equity account at the end of the current
accounting period, a process referred to as closure. GnuCash does not
specifically require this as its reports can be generated for any specified
period but it does have the ability to close temporary accounts if it is
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