[GNC] Beginner Accounting Question Using GnuCash

[Michael or Penny Novack]

On 12/17/2021 6:48 AM, Patrick Skelton wrote:
> Hi, David,
>
> Thank you for that. I have actually just kind-of worked that bit out but I
> would like the £8 spent on paper to become an asset. Is it simply then a
> case of entering a transfer from Expenses-Stock Purchases to Assets - Stock
> on Hand?
>
> Kind wishes - Patrick

You were doing it correctly, Patrick. Your example appears to be a 
"stationery" business, so you correctly had the purchase of paper go 
into an asset "inventory" rather than being an expense. You also did the 
sales transaction correctly, recording not just the part with the 
customer but the part where you are now decreasing inventory and 
recording an expense for the cost of that pad sold.

Michael D Novack