[GNC] Asset vs Equity accounts?

gnu Gord gnucashgord at gmail.com
Sun Feb 14 16:29:27 EST 2021


First off I'll say I have no formal accounting training so I don't really
understand accounting terminology or how it is represented in GnuCash.

I understand the basic idea that Equity = Assets - Liabilities, but I'm
unsure how this should be entered in GnuCash.

Specifically, my question is; how do I know if something I have should be
recorded in an Asset account or an Equity account?

For example, our house. The documentation says an asset is something I own.
That would mean our house should go in the Asset account, correct?
But the documentation also says equity is my overall net worth. If I don't
owe anything on my house, should it be recorded in an equity account
instead of an asset account?

What about a car, should it be recorded as an asset or equity if I own some
of it but have a loan on it as well?

Sorry for asking so many dumb questions but my head is about to explode!!
;)


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