[GNC] Handling of Equity and Retained Earnings

[David Cousens]

Adrien and Christian,

Just a comment on Adrien's last post. There is no need to have an opening
balance for Retained Earnings. Any opening balance would be reflected in the
Equity entries when you enter the opening balances for the Asset and
Liability accounts (in a new book the Income and Expense Accounts should all
have zero balances) in the new book. If you wanted to create an opening
balance for Retained Earnings it would have to have Equity:Opening Balances
as the transfer account to maintain the correct balances carried forward.
The details of past Retained Earnings are recorded in the old book and
unless you also transferred all the transactions to retained earnings as
well your new book is not really going to contain any useful information you
would need to carry forward.

David Cousens



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David Cousens
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