[GNC] Inserting the Beginning Balances of Accounts in Gnucash

[David Cousens]

Hi Jose,

The process of adding the opening balances in a new book for you asset and
liability accounts should create the value of the total equity from your
previous set of books in equity so your total equity should be correct and
it will be the sum of all the transactions to the Equity:Opening Balances
account at this point.

You want to have the appropriate balances in the equity sub accounts
corresponding to the closing balances for those accounts in your previous
set of books. As the total of Equity should already match, you can only
achieve this by transferring the amount of the closing balance in the
previous book for a specific Equity sub account to that account from the
Equity:Opening Balances account in the new book.

For example if when you closed your previous set of books the
Equity:Retained Earnings balance was a  positive or credit balance of $1000
you would have to create a transaction in your new books as follows

Equity:Opening Balances   Dr 1000
Equity:Retained Earnings                 Cr 1000

to effect this transfer. (If the equity account had a negative or debit
balance, you would exchange the debits and credits). This will ensure you
will not double count your equity. 

I think from memory the opening balances tool in the new book setup will not
allow you to enter these transactions between equity sub accounts and the
Equity: Opening Balances account. I am not sure of this though as I haven't
tested it. If it doesn't, then you will have to create the transactions as
above  manually either in the Equity:Opening Balances register or in the
register for the equity account you for which you wish to set the initial
balance.

David Cousens



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David Cousens
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