[GNC] Where do 'opening liabilities' go?

[Michael or Penny Novack]

On 11/11/2024 1:15 AM, Patrick James via gnucash-user wrote:
> If I found something of value that was included in a past transaction, such as that nice William Woodard artwork in the attic, then I'd adjust the description of what was purchased as 1 house and a couple of paintings.

I picked that example precisely because finding those paintings does not 
affect the cost basis of the house. Nor did you acquire them when you 
contracted to purchase the property (because you purchased it) but 
because they had been left there, later found*. Nor are the rules for 
figuring capital gains on these two different kinds of property the 
same. For example, when/if you sold the house you occupy for a gain BUT 
within a certain amount of time bought another house for as much or 
more, you do not have to record a gain (and pay tax on that). But 
if/when you sold the paintings, you would have a gain even if you bought 
other paintings with the money.

Are you just wanting to consider the DATE to be assigned to the 
transaction bringing the paintings onto the books? If you chose to 
backdate then all the past balance sheets wrong (would change if you 
reran them). In formal bookkeeping, you do not CHANGE  an existing entry 
but instead enter a correcting transaction, usually with the date the 
correction is made. You aren't indicating that a change in equity is 
involved.

Michael D Novack

PS: Also keep in mind that transactions affecting income and expense ARE 
changes to equity as those are "temporary" accounts of fundamental type 
equity, Just being deferred until "close the books" (which could be 
forever for gnucash users)


* Not part of the contract to purchase the house -- Both parties to the 
transaction ignorant as to the existence of the paintings.