[GNC] GNC Equity and Retained Earnings not tracking together?

[Brian]

> On Tue, 10 Mar 2020 at 01:02, Brian via gnucash-user <
> gnucash-user at gnucash.org> wrote:
> 
> > I'm wondering if GNUCash is actually calculating RETAINED EARNINGS
> > properly.  Because after issuing a distribution to shareholder the
> > Retaining Earning calculation increased by Net Income but did not
> > decrease by Asset:Cash which was debited and credited to
> > Equity:Shareholder Distribution.
> >  
> 
> The calculation of Retained Earnings and Unrealized Gains in the
> Balance Sheet is rather primitive, and has been as such since nearly
> forever.
> 
> Retained Earnings = sum total of income less expenses at the
> balance-sheet date.
> Unrealized Gains = sum total of (asset-liability) value, minus sum
> total of (asset-liability) cost.

Christopher, then I believe you are saying to get a proper "retained
earnings", which recognizes the reduction of Assets:Cash and increase to
Liability:Shareholder distribution, that one would need to properly
close the books by moving income and expense to a Liability:Retained
Earnings sub-account?