[GNC] N00b accounting q: opening balances

Gyle McCollam gmccollam at live.com
Sat Apr 30 11:49:25 EDT 2022


In double entry accounting you have a Debit and a Credit for each transaction.  In your case you debited your Checking account and credited Equity, you didn't actually "transfer" the money.  Same goes for savings and machinery.  The opening balance each increased your equity in your "hypothetical businesss".  Seems like you did everything correctly.


Thank You,
Gyle McCollam

Gyle McCollam

609.680.2326                     Mobile

gmccollam at live.com<mailto:gmccollam at gyleshomes.com>           email

________________________________
From: gnucash-user <gnucash-user-bounces+gylemc=gmail.com at gnucash.org> on behalf of John Edward Hynes <john at hytronix.com>
Sent: Saturday, April 30, 2022 10:32 AM
To: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Subject: [GNC] N00b accounting q: opening balances





            Hi list,I’m very new to accounting and gnucash.  In setting up a hypothetical business, I have a question about opening balances:I entered $1000 in the equity opening balances account, transfer to current assets checking.  I also added the savings opening balance, and machinery starting book value, in the same way.Shouldn’t the open balances equity zero out after appearing in the “target” accounts correctly?  There’s no imbalance, everything looks fine, except that opening equity account doesn’t decrease.  Should it, or is this normal?Thanks!








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