[GNC] Equity Account "problem"

[Default User]

On Tue, 2023-07-11 at 16:00 -0700, Dean Gibson wrote:
> There is no work-around because you do not understand the *BASICS *of
> accounting.  I would suggest a good book (there are many).
> 
> On 2023-07-11 15:48, Default User wrote:
> > Hi!
> > 
> > Is there a way to have Gnucash 4.13 (Debian GNU/Linux 12 Bookworm)
> > automatically calculate, and update "Equity" in the main accounts
> > tab,
> > to show the "real" value of total Equity, after any action (or at
> > least
> > transaction) that would affect "real" equity?
> > 
> > Example:
> > Start with the GnuCash "Common Accounts", as in gcashdata_1.gnucash
> > from the Tutorial and Concepts Guide, with all accounts set to
> > $0.00.
> > 
> > Now make a transaction so that Equity:Opening Balances starts with
> > $10.00, and Assets:Current Assets:Cash in Wallet starts with
> > $10.00.
> > At this point, Equity = $10.00.  All good so far.
> > 
> > But now, enter a transaction such as Expenses:Auto:Fuel (increase
> > by
> > $5.00), paid by transfer from Assets:Cash in Wallet (decrease by
> > $5.00).
> > 
> > So now:
> > Assets = $5.00
> > Liabilities = $0.00
> > Equity = $10.00
> > 
> > So . . .  if Assets - Liabilities = Equity, then
> > $5.00 - $0.00 = $10.00?
> > 
> > Thus, Equity does not seem to include the $5.00 Expense
> > transaction.
> > [Note: of course, the Balance Sheet in Reports does correctly show
> > Equity as $5.00.]
> > 
> > I assume that GnuCash has always been this way, from the beginning,
> > and
> > is not likely to change now!
> > 
> > But is there a viable "workaround"?  I am pretty sure I understand
> > what
> > is going on, and maybe why it was done that way (so that the
> > account
> > ledger tabs show legitimate transactions" only?)
> > 
> > But it does bother my sense of "correctness".
> > 
> > [Note: I did see somewhere online a link to a web page that may
> > have at
> > one time shown the desired solution, but the web page has since
> > been
> > 404'd.]
> > 
> > : (
> > 
> > 
> > 
> > 
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Ouch!
Sorry . . . 

: )