Balance sheet

[Adrien Monteleone]

Jacco,

The exact solution depends on your company’s status. (is it a pass-through entity or separate?) Speak to your accountant about this.

The basic solution is you need two sets of books, one for business, one for personal.

When your company pays you it is an expense and thus not part of the company’s equity calculation. (Well, it might generate a loss, but certainly not retained earnings, and since you say in this case you do this at the end of the year, it will certainly subtract from retained earnings)

The money will then appear as personal income in your personal books.

If everything has to be one set of books then that money really is ‘your’ equity but in that case, you and your company are not considered separate anyway. You could create a separate equity account if you like. That way you can keep track of actual company retained earnings and your own draw/pay/dividends, etc.


> On Jan 2, 2017, at 6:31 AM, gnucash-user-request at gnucash.org wrote:
> 
> From: Jacco Ermers <jacco.ermers at gmail.com <mailto:jacco.ermers at gmail.com>>
> Subject: Balance sheet
> Date: January 2, 2017 at 2:35:03 AM CST
> To: gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org>
> 
> 
> (sorry for my other "replied" post)
> 
> Hi everyone,
> 
> Closing down the year I was fishing through the report options. So far I provided my accountant with the profit loss report and that is fine.
> 
> But looking through I also found the Balance sheet report which looks very usefull. Unfortunatly I found a small problem in my setup and was wondering how to correct this.
> 
> At the end of the year I have a profit of (i.e.) €50.000
> 
> Of this €50.000 I provided myself with €25.000 for living expenses and I have setup a different account up for that so that my bank account matches. Now at the end of the year I collect the remaining €25.000 to that account.
> 
> But when I run a balance report it still lists all previous years in equity.
> 
> How do I keep all my records (don't want to zero all my accounts) but at the end of the year transfer it out of equity. It is not the companies equity anymore at that point. Should I set myself up as a vendor? or is there a better way?
> 
> 
> Thnak you for helping me out on this