[GNC] Asset vs Equity accounts? (Stan Brown)

[gnu Gord]

Thank you very much to all that replied. There are, obviously, a lot of
people out there with a much deeper understanding of this than I currently
have (or probably ever will) and I thank you for sharing your knowledge and
experience.
I am slowly getting a handle on the overall concepts and believe the point
here is to 'account' for all movement of funds. In a perfect world, every
transaction would have a source and a destination (my terminology) and
every account would start at zero but if we start with something we need to
record where it came from so we can use 'opening balance' in Equity. I'm
not completely sure if this is all correct (or close to correct) but it's
kind of the way I understand it so far...

I believe for my purposes, now, I will record only 'opening balances' in
the Equity account. That should get me by until I realize it's completely
wrong. ;)

Thanks again.



On Mon, Feb 15, 2021 at 2:22 PM Adrien Monteleone <
adrien.monteleone at lusfiber.net> wrote:

> Generally yes, but that usually is not done for a personal vehicle
> unless you are allowed to do so for some type of credit or deduction on
> taxes. Businesses routinely depreciate their fleets however. The rules
> are varied and myriad as to what you are allowed to do.
>
> Regards,
> Adrien
>
> On 2/15/21 4:12 PM, Larry Long wrote:
> >   Stan,
> > You gave an excellent intro into the fundamentals of accounting (and
> GnuCash)!I would like to follow up with a basic question of my own.
> > Let's say that I have added my new car's value to Assets and my auto
> loan to Liabilities.After a year, I log the car's depreciation as a
> reduction to it's account in Assets.Where is the account for the offsetting
> depreciation amount?Is that an expense?
>
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