[GNC] "Stock" Liabilities do not show up under liabilities in Balance Sheet report

[Bo Byrd]

Hi yes exactly - it its the other case you describe for "unpaid" issues. Under report options I select all accounts, and those liabilities do show up - but they show up in the assets section at the top of the report (where the calculation correctly subtracts them from my assets). All that is at the bottom of my balance sheet report is A/P and Credit Card accounts.

I think it has something to do with how I created a "stock" account under the top-level Liabilites account, and then how I must record transactions - for example if I am to show receipt of 100 units, I will enter "-100" under the "Tot Shares" column for the liability account split, and then a "+100" under the "Tot Shares" for the asset account side split.

But then the liability doesnt show up under liabilities - it shows up in the top section "Assets" (as a negative value). So its not really off at all as far as the numbers/maths go, its just weird that its showing up top.



On Sunday Jan 26, 2020; 5:47pm CST, David Cousens <davidcousens at bigpond.com> wrote:


The situation you are describing is not clear. By stock do you mean shares
which are issued to you but which you have not purchased, perhaps as part of
a stock option?

It is not clear why you would record this with splits to both Assets and
Lliabilities. You mention "their liability account". Their liability account
should not appear in your books , only liabilities, that is obligations you
have to pay someone, that you have incurred. One would normally record any
acquistion of stock as an asset against equity, either the temporary income
and expense accounts of equity or a permanent equity account or as a
transfer from another asset account. You would normally only incur a
liability if you borrowed the money to purchase the stock for example, but
you borrow it not the asset you purchase with it.

The other case could be if the stock was "unpaid" shares for example where
you receive an issue, but may be called upon to pay for them at a future
date. Then it may be appropriate to record that future possible demand for
payment as a liability. In this case the asset value is neutral in your
accounts (apart from capital gains and dividends) and it should be included
in both the totals for assets and liabilities. You may need to check which
accounts are selected for inclusion in the Balance sheet report and which
are selected to be displayed explicitly in the report in the Edit->Report
Options.

You may have to describe the situation in a bit more detail but this may
really an accounting question and perhaps you should seek professional
advice in your jurisdiction on how to record the particular situation.

David Cousens



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David Cousens
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