[GNC] what is best procedure to 'split off' to a new set of books?

[David Cousens]

Michael

Contributions was likely the wrong term but I was thinking in terms of
owner's contributions to the business which obviously can occur at any
time not just when the books are split.

Agreed that any suggestions we might make here are not accounting
advice.

David 
 
 On Mon, 2025-01-20 at 17:49 -0500, Michael or Penny Novack wrote:
> On 1/20/2025 3:36 PM, David Cousens wrote:
> > Michael,
> >   you have convinced me that it does make more sense to treat the
> > contributions as an asset rather than a reduction in equity.
> > 
> > David
> > 
> "Contributions?    I am confused.
> 
> On the books of these businesses, equity represents the ownership 
> interests << in this special case, you are the  sole owner --- but
> there 
> COULD be multiple owners and the accounts under equity would track
> that 
>  >> If you make a contribution to the business (increase your 
> investment) then on the books of the business that would increase
> YOUR 
> equity account. But since a sole owner, just undivided equity. The
> debit 
> side would depend on the nature of this "contribution".
> 
> On YOUR (personal) books the business is an investment, an asset.
> When 
> you make a contribution (say pay a business expense using your
> personal 
> CC) that is an increase in your investment (debit an asset) and a
> credit 
> to your liabilities (the CC)
> 
> Look, we aren't talking about gnucash here, but accounting. Please
> note 
> that I lack "qualifications" to give accounting advice.
> 
> Michael D Novack
> 
>