[GNC] Can someone tell me how A-L=Eq+(I-Ex) is correct?

[W. Neal Lewis]

Gyle,

Thank you for your encouragement.

I will keep after it.

Best regards,

Neal Lewis

On 8/31/22 3:08 AM, Gyle McCollam wrote:
> That is an "L" not an "I" in the equation at the end of my email: "A=I 
> (+/-) Eq" to get it to equal.
>
> Thank You,
>
> *Gyle McCollam*
>
> Gyle McCollam
>
> 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 Gyle 
> McCollam <gmccollam at live.com>
> *Sent:* Wednesday, August 31, 2022 3:15 AM
> *To:* W. Neal Lewis <wnlewis at southwind.net>
> *Cc:* gnucash-user at gnucash.org <gnucash-user at gnucash.org>
> *Subject:* Re: [GNC] Can someone tell me how A-L=Eq+(I-Ex) is correct?
> Neal,
> Your welcome.  I see a few others have responded with similar thoughts 
> and explanations.  I'm sorry I forgot to respond to all, so the list 
> did not see my original email, but as I said other replied with 
> similar answers, but in more detail.
>
> Don't worry, I trust you will get there.  I'm sure there are 
> engineering concepts that we accountants would not understand 
> immediately.  The key to this is that at any point in time (Income -  
> expenses = 🔺Equity).  So if your income and expenses aren't zero 
> (close Books at the end of the year), you have to add this expression 
> to A=I (+/-) Eq to get it to equal.
>
>
> Thank You,
>
> Gyle McCollam
>
> Gyle McCollam
>
> gmccollam at live.com<mailto:gmccollam at gyleshomes.com 
> <mailto:gmccollam at gyleshomes.com>> email
>
> ________________________________
> From: W. Neal Lewis <wnlewis at southwind.net>
> Sent: Tuesday, August 30, 2022 9:24 PM
> To: Gyle McCollam <gmccollam at live.com>
> Subject: Re: [GNC] Can someone tell me how A-L=Eq+(I-Ex) is correct?
>
> Gyle,
>
> Thank you for your reply.
>
> Let me think about it for a while.
>
> It does not yet make sense to my Engineering brain.
>
> Sorry to be so dense, but terms as well as numbers must balance for an 
> equation to be correct.
>
> Best regards,
>
> Neal Lewis
>
>
>
> On 8/28/22 6:28 PM, Gyle McCollam wrote:
> At the end of the year I (income) - Ex (expenses) is your 
> increase/decrease, depending on whether the number is positve or 
> negative, to equity for the year and at any given point during the 
> year it is your increase/decrease YTD equity figure.  So 
> realistically, when you added +(I-Ex) and it should be minus Ex, you 
> haven't really changed the equation A=L+Eq.
>
>
> Thank You,
>
> Gyle McCollam
>
> Gyle McCollam
>
> gmccollam at live.com<mailto:gmccollam at gyleshomes.com 
> <mailto:gmccollam at gyleshomes.com>> email
>
> ________________________________
> From: gnucash-user 
> <gnucash-user-bounces+gylemc=gmail.com at gnucash.org><mailto:gnucash-user-bounces+gylemc=gmail.com at gnucash.org> 
> on behalf of W. Neal Lewis 
> <wnlewis at southwind.net><mailto:wnlewis at southwind.net>
> Sent: Sunday, August 28, 2022 6:38 PM
> To: gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org> 
> <gnucash-user at gnucash.org><mailto:gnucash-user at gnucash.org>
> Subject: [GNC] Can someone tell me how A-L=Eq+(I-Ex) is correct?
>
> I will agree that by mathematical logic, Assets-(Liabilities)=Equity. ∴
> Assets+(Liabilites)-(Liabilities)=Equity+Liability, or stated more
> simply, A=Eq+L. I have added Liability to both sides ∴ both sides remain
> equal.
>
> However, although (A+L)=Eq, (A+L)≠Eq+(I+Ex). I have added a term to the
> right side that is most decidedly not on the left ∴ they cannot be equal.
>
> ∴ A and L must be terms that include other factors.
>
> Not good at accounting, I will ask what those other factors are.
>
> I want to use GnuCash but I am having trouble getting my mind to accept
> an equation that is not correct unless terms are redefined.
>
> Please help me with my (obviously) incorrect understandings.
>
> Thank you,
>
> Neal Lewis
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