[GNC] How to handle Asset equity etc in begining?

[Adrien Monteleone]

You should speak to a local accountant about how to book asset values for your jurisdiction. But assuming the land’s book value is indeed what you indicated, simply create a transaction like so:

Dr. Assets:Fixed Assets:Land
Cr. Equity:Opening Balances

Is the advance unearned revenue/income? If so, you’d book it something like this:

Dr. Assets:Current Assets:Cash
Cr. Liabilities:Unearned Revenue/Income

When you ‘earn’ the advance by performing work, delivering goods/services, then you’d enter something like this:

Dr. Liabilities:Unearned Revenue/Income
Cr. Revenue/Income

You can accomplish those two transactions either directly, or using the Business Features. (You’d make a pre-payment debited to Cash and posted to the Unearned account, then later create an invoice with the line-item posting to the Revenue/Income account and the invoice itself posting to the Unearned account)

Regards,
Adrien

> On Sep 10, 2018, at 10:57 AM, RoyUB <uroborostech at gmail.com> wrote:
> 
> Hi, 
> I am a new user. I an just starting to use Gnu cash.
> I have a land worth Rs. 6000000/
> Somebody given me an advance of 1000000/
> I know land is a asset, advance should come to cash account.. etc
> But how the equity and all come into this? 
> How to arrange opening balance in this case?
> Thank you.
> 
> 
> 
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