[GNC] Handling of Equity and Retained Earnings

Adrien Monteleone adrien.monteleone at lusfiber.net
Tue Jan 21 13:59:59 EST 2020


> On Jan 21, 2020 w4d21, at 9:47 AM, Christopher Lam <christopher.lck at gmail.com> wrote:
> 
> On Tue, 21 Jan 2020 at 15:39, Christian Lynbech <clynbech at gmail.com> wrote:
> 
>> It does seem as if the balance sheet contains all the information I need,
>> however have I understood it correctly that one only specifies a single
>> date (as opposed to an interval)? In other words, does the balance sheet
>> always produce the accumulated result from the beginning of the book to the
>> selected date? There is another report called Equity Statement that works
>> on periods and while it has the end result, it lacks all of the individual
>> account details that the balance sheet has.
>> 
> 
> Try the income statement (aka profit and loss) instead.
> 
> Or try the multicolumn balance-sheet (can display balances at several date)
> or profit-and-loss instead in the experimental reports menu. Keep exploring
> ;)
> 
> 
>> Somewhat related to this, I am also still struggling to figure out to
>> handle the equity. On the Balance Sheet, I see the equity sum and the
>> result, but the two are not combined. Are there any alternative to closing
>> the book or do some manual transaction to get equity rebalanced?
>> 
>> Let me try to provide an example.
>> 
>> In year 1, I put 1000 into the company which is added to the equity
>> sub-account “Founder Deposit”, the company buys a computer for 100 and does
>> some work that pays 200. On the Balance Sheet for year 1, this is listed as
>> equity of 1000 and result (income - expense) of 100. Lets say the company
>> in year 2 also does work that pays 200, how do I handle that year 2 starts
>> with equity of 1100, rather than equity of 1000 and a result of 100? I can
>> move the result to equity by closing the book, but is there any report that
>> takes this into account without actually doing the close?
>> 
> 
> Income statement from the beginning of year 2 to the end of year 2. Income
> statements *don't* contain equity items (someone prove me wrong?).

Sorry, can’t help you there. Income Statements only report Income & Expenses, not Equity or Liabilities. You are correct. (if such a report did, it would be a bug for certain)

Regards,
Adrien


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