[GNC] help to set up equity sub-accounts opening balances

Michael or Penny Novack stepbystepfarm at comcast.net
Fri Aug 7 09:52:05 EDT 2020


On 8/7/2020 9:14 AM, D. via gnucash-user wrote:
> Marilyn,
>
> Part of your problem, I think, is based on a misunderstanding of terminology. You keep referring to these virtual amounts as "Equity" when really they are *Assets*. In the gnucash world, these funds should be placed as Assets accounts. That you have set them aside in your mind as "not-assets" doesn't change this fact.
>
It's a confusion about what is meant by "assets", "liabilities", and 
"equity".

Marilyn, go back to the start.

IGNORE what you see you can or cannot do with gnucash's "opening 
wizard", because that's not relevant << you could do it the old 
fashioned way with separate transactions; create the CoA with all 
accounts at zero and then enter the transaction(s). Whatever you could 
have done pen and ink on paper you can do with gnucash.

Instead of asking HOW, describe WHAT you are trying to do. For example, 
"I want to create/track "reserves" or "restrictions" on funds. Thus even 
though you are wanting "personal" books you might want to look at the 
discussions that have been taking place on this list about how to deal 
with "restricted funds" such as non-profit organizations often have to 
deal with.

The usual place to track restrictions on money that is actually in an 
asset account < doesn't have its own separate bank account > is under 
"liabilities". Thus while the money is actually in your bank account, 
you could put a "reserved funds" child under liabilities and under that 
"education funds", etc. Then you can think "while the money IS in my 
bank account it is owed to educations funds".

Michael D Novack




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