[GNC] Double entry directly to Equity

[Michael or Penny Novack]

On 5/8/2022 11:26 AM, David Long wrote:
> Hi, I just tested David's method of creating a new equity account and
> crediting the revaluation to that account and debiting the asset account. I
> did not attach  the new Revaluation Reserve  account to an existing equity
> account (parent)  but I specified it as a new top level account. Either way
> works fine, and the revaluation reserve appears where it should on the
> balance sheet report.
>
>
> Cheers
> David

This question took longer to get resolved for you because of 
misunderstanding.

You really had a gnucash question (and not a question about what could 
or could not be put under equity). Gnucash is an AUTOMATION of standard 
double entry bookkeeping and with one (for some us major/annoying) 
exception* you can do anything you could working the old fashioned way 
pen and ink on paper. So yes of course you can create accounts of type 
equity. It';d be kind of hard to use for accounting for partnerships 
(for example) if you couldn't set up :drawing" accounts for each partner.

IF you were opting to have all transactions entered "journal style" 
(like you have to do for splits) it would be exactly like the old days 
except "posting" would be automatic and error free and anything entered 
out of balance immediately obvious.

My suggestion for anybody experienced doing bookkeeping the old 
fashioned way is that IF they are confused by/have trouble with any of 
the "shortcuts" gnucash offers, simply don't use those at first. Thus I 
set up books for entities without using the "opening balance" feature 
(create accounts zero and instead open the books with a transaction just 
like in the old days.

Michael D Novack

* The "business features" -- you can't ask for invoices to be produced 
unless "accrual basis" with the invoiced amount a "receivable". That 
annoys me because doing books for non-profits where often invoices are 
wanted (like member dues) but these amounts are NOT receivable (there is 
no obligation to renew). This is one of the reasons that many orgs push 
"pledge of a monthly donation" and that set up to be automated. A 
"pledge" IS legally/technically "receivable".