[GNC] GNUCash - Total Assets <> Total Liabilities + Equity

[Derek Atkins]

Hi,

I don't see any "snip" so not sure what you are referring to...
But yes, my guess is yes, it's an exchange-rate issue and not accounting
for the change in value from Time_0 to Time_1 when you have a
cross-currency transaction.
My first guess would be what the exchange rate was on the 1000€ on the
date you created the transaction, and see if that helps answer the
discrepancy.
The other places to look would be exchange rate differences at any other
exchanges.
Good Luck,
-derek

On Wed, December 28, 2022 4:53 pm, Sebastian Naumann wrote:
> Hi everyone,
>
> I have a small issue here arising, from what I believe, the Exchange
> rates.
>
> Background:
>
>   * The entity I am working on received a Loan in EUR and decided to set
>     their Common Stock Capital to 1000 EUR instead of 1000 USD.
>   * The entity operated for one year only and will be closed as of
>     12/31/2022
>   * All outstanding loans were already reclassed (as part of closing the
>     accounts) to other Income as "Cancellation of Debt Income". This is
>     approved by the CPA.
>
> The situation at this point:
>
>   * *All Invoices and bills have been paid in full!!!*
>   * *Trial Balance is good -> Debits = Credits
>     *
>   * I closed out all the accounts, including the Bank Account which was
>     closed yesterday -> Hence there are $0.00 Assets.
>   * On the other side of the Balance Sheet, we only have
>       o the Common Stock for 1000 EUR, which is converted to 1062.15 USD
>         as of the latest exchange rate used -> *SO FAR SO GOOD.*
>       o The Retained Earnings, which are the loss for the current year
>         -> *All good here too*.
>       o "*Unrealized Losses"* of $116.52, which, from a logical
>         standpoint can only come from the FX Adjustment on Common Stock
>         (see snip below)
>       o Equity + Liabilites is now $21.55 vs Total Assets of $0.00
>
> However, how come this does not balance? Anyone have this issue before?
>
> Mit freundlichen Grüßen
>
> Sebastian Naumann
> *US Compliance Manager*
>
>
>
> *MERCATORZ INTERNATIONAL GmbH & Co. KG*
> Klingholzstr. 7
> 65189 Wiesbaden
>
> Web: www.mercatorz.com <https://www.mercatorz.com>
> E-Mail: naumann at mercatorz.com
> PGP Fingerprint: DBCF ED37 6B00 25DE C469 5E0B E6B0 15C4 E292 430E
> Tel. (direkt): +49 (0) 611 95 00 96-11
> Tel.: +49 (0) 611 95 00 96-00
>
> *Buchen Sie Ihr Erstgespräch
> <https://outlook.office365.com/owa/calendar/Kundentermine@mercatorz.com/bookings/>*
>
> Sitz: DE-65189 Wiesbaden
> Handelsregister: Amtsgericht Wiesbaden, HRA 11324
>
> Vertreten durch: MERCATORZ Verwaltungs GmbH
> Geschäftsführer: Michael Kempe
> Sitz: DE-65189 Wiesbaden
> Handelsregister: Amtsgericht Wiesbaden, HRB 32973
>
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-- 
       Derek Atkins                 617-623-3745
       derek at ihtfp.com             www.ihtfp.com
       Computer and Internet Security Consultant