[GNC] Can someone confirm if this split transaction is correct?

[Michael or Penny Novack]

On 12/12/2022 8:21 AM, Dr. David Kirkby wrote:

> Given a simple transaction has two splits, how many should this have?
>
We aren't going to be able to help much while fundamental concepts are 
misunderstood because that would affect the meaning of terms.

a) In double entry bookkeeping the SIMPLEST form of transaction affects 
TWO accounts, one for the debit side and one for the credit side. We do 
NOT call such a transaction a "split".

b) However a transaction can affect more than two accounts, can have 
more than one account being debited or more than one being credited or 
more than one on both sides.THAT is what is being called a "split". In 
other words, any transaction affecting three or more accounts is a split 
transaction/ It isn't really meaningful to talk about "how many splits" 
. The only way I would differentiate would be between "one way" and "two 
way. A one way split has only one debit or one credit with the other 
side having multiple accounts. A two way split has more than one debit 
and more than one credit. Using gnucash, we are starting in one of the 
affected ledger accounts and from there hitting "split. Doe a one way 
split it will be MUCH easier to enter if that account is the side that 
has just one account (the unsplit side)

c) When you hit the "split" button you are asking for "journal mode". 
That is how we who did bookkeeping in the old days had to enter ALL 
transactions, even the simple ones with just two accounts affected, 
After completion of the journal entry it would get "posted" to the 
ledger, putting each line of that journal entry into the affected ledger 
account << BTW, this was an error prone process, easy to get a digit 
wrong or misplaced >> Gnucash automates the posting when you hit 
":enter" for the transaction, Gnucash also lets you skip/shortcut the 
journal entry step for simple transactions affecting just two accounts.

NOTE -- gnucash can show you the journal as a report. This is all 
transactions in date order. But in terms of how we normally use gnucash, 
think of it as having a virtual journal as opposed to a file.

Michael D Novack