[GNC] gnucash-user Digest, Vol 269, Issue 57

[Norm Samuelson]

The deposit of $60,000 CAD was credited to Income (which was defaulted 
to USD).  I had not thought about splitting income into two accounts, 
Income CAD and Income USD.  I just did that and it changed the balance 
sheet.  I named this fictitious business "None of your business" just 
for fun.

None of your business Balance Sheet 06/30/2025

Assets
Assets
       Current Assets
             CAD Checking    C$20,000.00        $14,800.00
             USD Checking    $29,800.00
Total Assets            $44,600.00
Liabilities
Total Liabilities            $0.00
Equity
Unrealized Gains            $200.00
Total Equity            $200.00
Total Liabilities & Equity            $200.00

So, I still have $200 Unrealized Gains.

I just generated a P&L report, and I think it sheds a little light on this.

None of your business Profit & Loss For Period Covering 07/01/2024 to 
06/30/2025

Revenues
Income
       Income CAD        C$60,000.00        $44,400.00
Total Revenue            $44,400.00
Expenses
Total Expenses            $0.00
Net income for Period            $44,400.00

When the initial $60,000 CAD was entered, it was worth $45,000 USD at 
the then current exchange rate.  But now that income is worth only 
$44,400 USD at the current exchange rate.

Now the remaining $20,000 CAD at the current exchange rate is worth 
$14,800, rather than the $15,000 it would be if the exchange rate had 
not changed.

So what I now see is that it is showing a different amount of income 
when converted to USD, because of the change in exchange rate.  When I 
transferred the first $20,000 CAD to $15,000 USD, it was at the old 
exchange rate, but would be worth only $14,800 USD at the current 
exchange rate, and the difference is my Unrealized Gain.

I started this thread trying to understand what was meant by the 
Unrealized Gain, and now I think I understand.

Thanks for your help.

- Norm -

On 8/28/2025 9:00 AM, gnucash-user-request at gnucash.org wrote:
> Date: Wed, 27 Aug 2025 18:26:40 -0400
> From: Michael or Penny Novack<stepbystepfarm at comcast.net>
> To:gnucash-user at gnucash.org
> Subject: Re: [GNC] Currency Transfers result in Unrealized Gain (or
> 	Loss)
> Message-ID:<ca077b3a-cdfe-4122-9407-8ce9ecb53d0b at comcast.net>
> Content-Type: text/plain; charset=UTF-8; format=flowed
>
> On 8/26/2025 6:34 PM, Michael or Penny Novack via gnucash-user wrote:
>> On 8/26/2025 5:56 PM, Norm Samuelson wrote:
>>
>>> I deposited $60,000 into the CAD account.
>> ? ? The debit account was the CAD bank account --- what was the credit
>> account? It was in what denomination? (if not CAD an exchange rate
>> involved as of that date
> If I have to, will ask the questions on to a response. You skipped
> answering this.
>
> :I deposited 60,000 CAD to the CAD bank account. So that was the DEB+IT
> side of that transaction. What was the CREDIT side (what account). This
> is double entry bookkeeping. Every transaction must have equal debit and
> credit totals.
>
> Michael D Novack