[GNC] corporate profit tax ........... where to put

[Michael or Penny Novack]

> Now ......... I understand that gnucash has no separate Equity account, at
> least as long as the books are not closed. So how to book step 1)?


Before dealing with the question itself. let's get THIS misconception 
out of the way. I believe the source of the misconception is that 
gnucash provides example "skeleton" books with typical accounts in the 
CoA under asset. liability, equity, income, expense, etc. Except these 
examples don't happen to have sub accounts under equity and that might 
be the source of the misconception that you couldn't have such accounts

For example, suppose the entity is a partnership with three partners, A, 
B, and C. A contributed $10,000 of the capital, B $5000, and C $5000 of 
"goodwill".

Then under equity you would have accounts for partner A, Partner B, and 
partner C. Best done not using the initial value wizard but an explicit 
transaction debiting bank $15,000 and goodwill %5000 (goodwill is 
considered an asset of the intangible sort) and crediting partnerA 
$10,000 partnerB $5000 and partnerC %$5000. After this transaction, 
total assets would be $20,000, total liabilities 0, and total equity $20,000


In other words, gnucash has in your CoA the accounts that YOU choose to 
put there according to your needs. Gnucash doesn't have or not have 
particular accounts except in the sense that example skeletons are 
provided for the use of beginners.

Michael D Novack