[GNC] Can a bank account have sub-accounts?

[Rich Shepard]

On Tue, 14 Mar 2023, Mort Q wrote:

> I thought of something like that, but I can't see how it works when I pay
> a bill, for example. e.g. The money for the new widget comes out of the
> widget asset account, and the bank account isn't debited, so GnuCash
> doesn't have a record that matches the bank statement any more. That was
> the thinking that led me to wonder about the extra asset accounts being
> under the main bank account.

Mort,

Double entry bookkeeping needs off-setting accounts; e.g., and expense must
come from an asset.

Using your example, you spend an amount on the widget, for example a check.
In the checking account register enter the vendor's name in the Description
field and the model or whatever in the Notes field.

Then, in the Transfer field enter the Widget account (perhaps it's a general
small tool account) and the amount you paid in the credit column. Save the
transaction.

You now have a 2-account transaction. Look at the Widget (or Small Tool)
register and you'll see that transaction in the Debit column with the
Transfer being the asset account.

Here are two resources for you:

What Is Double-Entry Bookkeeping? A Simple Guide for Small ... - FreshBooks
https://www.freshbooks.com › hub › accounting › double-entry-bookkeeping
Feb 22, 2023

Double-entry bookkeeping is an accounting method where each
transaction is recorded in 2 or more accounts using debits and credits. A
debit is made in at least one account and a credit is made in at least one
other account. The total debits and credits must balance (equal each other).

---------------------------
What Is Double-Entry Bookkeeping? | Business.org https://www.business.org ›
finance › accounting › what-is-double-entry-bookkeeping May 6, 2022

Double-entry bookkeeping is the process of recording two entries —a
credit and a debit entry—for every one financial transaction. Let's break
this down even more. Like we said, double-entry accounting means you'll
always record a transaction as a credit (or increase) in one account and as
a debit (or decrease) to another account.

Rich