[GNC] [newbie] how to treat a gift?

Tue Sep 3 19:26:38 EDT 2024

On 2024-09-03 14:54, Kalpesh Patel wrote:

> Couldn't one can elect to track paycheck by net rather than gross?

This is a worthwhile question. You have already received two correct 
answers. Let me try to rise up a level, then say the same thing a 
different way.

You should answer the question, what are you trying to track? GnuCash is 
a tool for doing accounting. Accounting is the tracking of value. What 
value do you want to track? What information do you want to have?

Do you want to be able to catch errors in your bank statement more 
easily? That is one possible goal.

Do you want to be able to match your paycheque and tax withholdings to 
your tax slips when you prepare your income tax return for the year?  
That is a second possible goal.

Do the laws in your area require you to report the financial performance 
of your business according to certain accounting standards?  That is a 
third possible goal.

It is good to be clear about your goals, because it will frequently help 
you answer questions like, how do I enter this transaction in my books?

If you only want to catch errors in bank statements, then maybe tracking 
paycheque by net is sufficient. If you want to match total pay, and 
total withheld taxes of various kinds, to your tax slips at the end of 
the year, then maybe you should track your paycheque by gross with 
splits to reflect the various withholdings. If you want to comply with 
financial reporting rules, then that makes further requirements on your 
bookkeeping.

You might find that you would benefit from advice which is based on a 
solid knowledge of your situation, the regulations to which you are 
subject, and the principles of accounting. Accountants can be a good 
source of that advice. Maybe you will have to pay them for that advice. 
Accounting textbooks can also help you understand principles, which you 
can then apply to your own situation.

So:

 1. What are your goals for the information tracking you do? That is for
    you to answer.
 2. Have you done enough self-study of accounting to understand what
    accounting principles will help you achieve your goals? That is for
    you to study.
 3. Are accurate, customised answers valuable to you?  Pay an accountant
    to answer some questions.
 4. Are you unclear about how to use GnuCash to apply those accounting
    principles?  Ask this list, perhaps we can help.

Does that answer your question?

Best regards,
      —Jim DeLaHunt

> -----Original Message-----
> From: Gyle McCollam<gmccollam at live.com>  
> Sent: Tuesday, September 03, 2024 3:27 PM
> To: David Warren<david at warren1.net>; Boniforti Flavio<boniforti.f at gmail.com>
> Cc:gnucash-user at gnucash.org
> Subject: Re: [GNC] [newbie] how to treat a gift?
>
> Don't forget on the paycheck, you also have to debit all the withholding accounts as well. Your salary is more than what cited to your checking out savings account.
>
>
>
> Sent from Samsung Galaxy smartphone.
>
>
>
> -------- Original message --------
> From: David Warren<david at warren1.net>
> Date: 9/3/24 3:21 PM (GMT-05:00)
> To: Boniforti Flavio<boniforti.f at gmail.com>
> Cc:gnucash-user at gnucash.org
> Subject: Re: [GNC] [newbie] how to treat a gift?
>
> Hi.  EVERY Gnucash entry is DOUBLE ENTRY.
>
> But you've answered your own question.
>
> Debit Assets:Current Assets:Checking Account for $100 Credit the income account of your choice but Income:Gifts Received is exactly what I would use too!
>
> For Salary, Debit Checking Account, Credit Income:Salary Received.
>
> On Tue, Sep 3, 2024 at 2:22 PM Boniforti Flavio<boniforti.f at gmail.com>
> wrote:
>
>> Hi all.
>> I've received 100 bucks from a relative as a gift, which he sent to me
>> via bank wire transfer.
>> In my GnuCash accounts I do have one called "Income:Gifts Received"
>> and I also of course have the "Assets:Current Assets:Checking
>> Account", where the money from the gift finally landed.
>>
>> How should I proceed to register this gift I received? I don't see any
>> reason to do a "double-entry", because the money is not coming from
>> one of my accounts - it's just getting INTO one of my accounts from external...
>> Same question for my salary, of course.
>>
>> Thanks for your help,
>> F.
>>
>> https://www.instagram.com/boniforti_music
>> https://soundcloud.com/boniforti_music
>> https://bonny-j.bandcamp.com
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