[GNC] Getting My Account To Trial Balance

[H M MacDonald OBE]

My accounts are showing a profit of £20.99  which shows as an Imbalance of
£20.99.  Sorry to be a bit slow on all of this but are folk saying that the
£20.99 needs to be added to current assets/equity to make the trial balance?
I¹ve tried that and it still fails.  It can¹t be added to the income  as a
profit since that will make the profit double.  Clearly there¹s something
I¹m still not getting ŠŠŠ

Thanks to everyone for their input so far.

From:  gnucash-user
<gnucash-user-bounces+spahonsecobe=gmail.com at gnucash.org> on behalf of Stan
Brown <the_stan_brown at fastmail.fm>
Date:  Thursday, 26 July 2018 at 13:21
To:  GnuCash User List <gnucash-user at gnucash.org>
Subject:  Re: [GNC] Getting My Account To Trial Balance

David T. wrote:

>  For those who *do* have such holdings, a balanced transaction will still fail
>  the trial balance if the gain or loss isn?t entered. In this instance, there
>  will be no entries in IMBALANCE-XXX, since each transaction balances.
>  Example: buy 10 shares of X for $100, using cash from your checking account
>  (credit/debit of $100). Then sell those shares for $150 (debit/credit of
> $150).
>  Both transaction balance?but where did that extra cash come from? Without
>  entering the gain of $50 as income, the Trial balance will fail.

Is that really what happens?  I can't understand why, if it does. Yes, you
end up with an extra $50 in cash, and you also end up with MINUS $50 in the
investment: the original debit of $100, and the sale credit of $50, leaving
a credit (minus) balance of $50. As far as I can see, the trial balance
still balances.

Of course, a negative balance in an investment account should raise a red
flag when (if) yo notice it: "Oops, I forgot to enter the gain as a
transaction." But I don't see how it should make the trial balance fail.

BTW, instead of a separate transaction, I might record the gain as a split:
Assets:Cash $150 debit
Assets:Investment $100 credit
Income:Gain on investments $50 credit

Is there any disadvantage to doing that, versus two transactions?
Assets:Investment $50 debit
Income:Gain on Investments $50 credit
Assets:Cash $150 debit
Assets::Investment $150 credit

-- 
Stan Brown
the_stan_brown at fastmail.fm
http://BrownMath.com
http://OakRoadSystems.com/
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