[GNC] The type of trading accounts
Gal
galbarm at gmail.com
Sat Oct 17 07:42:10 EDT 2020
Does a trading account, i.e. an account of type "Trading" that was auto
created by the system, acts like an income account or like an expense
account?
On one hand the concept behind this account type classifies it as an income
account:
https://www.mscs.dal.ca/~selinger/accounting/tutorial.html
"By convention, gains are recorded positively and losses negatively, and
therefore a currency trading account is a kind of income account."
The tutorial also classifies it as an income account by its placement and
sign in the accounting equation:
https://www.gnucash.org/docs/v4/C/gnucash-guide/currency_trading_accts.html
Assets = Liabilities + Equity (+ Income -Expenses) + Trading
But on the other hand, when I open a trading account register, I see that
money coming into the account (debit) is increasing its balance, and money
going out of the account (credit) is decreasing the balance, but this is the
behavior of expense accounts.
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