[GNC] Account setup

[Michael or Penny Novack]

On 9/22/2021 10:14 PM, davidcousens49 at gmail.com wrote:
> Rogier,
>
> Retained Earnings is an equity account so a retained earnings balance is
> recorded against equity itself as follows if your past retained earnings were a
> net profit (credit or +ve balance in your pevious set of accounts). If a net
> loss (debit or -ve balance_ then the debit and credit would be reversed
>                                              Dr       Cr
> Equity:Opening Balances:Retained Earnings    xxx
> Equity:Retained Earnings                              xxx
>
What I am saying is that the "retained earnings" showing in a gnucash 
balance sheet is a virtual account (you don't have to do a "close the 
books" to empty all income and expense accounts before running a Balance 
Sheet)

BUT depending on the sort of business, etc. might need an actual 
"retained earnings" account to track what can (or must) be distributed. 
In that case, just use something else for the name.

Michael