[GNC] asset discrepancy in change of year

[David Cousens]

Andrea

The Accounting Equation which will be satisfied if your accounts are
recorded correctly in double entry accounting is

Assets = Liabilities + Equity + (Income - Expenses).

In your case where you have no liabilities it will become
 
Assets = Equity + (Income -Expenses)

It is generally written in this form because the Expense and Income accounts
are actually temporary equity accounts for the current year. If you
rearrange the above you should have
 
Assets - Income + Expenses = Equity    (this is your net worth financially

whereas you appear to be calculating

Assets + Income - Expenses

As the (Income - Expense) is already recorded against Assets when you create
the transactions, you are including them twice in the total you are
calculating.

David



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David Cousens
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