Hello, For someone who uses Beancount to keep the books of a small company, I was wondering what is the correct convention for declaring dividends?
After reading about this in general accounting documents, it seems like in Beancount one should add to the Equity:Earnings:Previous account, and subtract from a Liabilities:Dividends-Payable account. However, in Beancount the Equity:Earnings:Previous account is a sort of "virtual" account which is usually not opened in the journal, whose balance is auto-generated. If I do open that account so that I'm able to write transactions to it, its balance is always visible in Fava's balance sheet, which I'm not sure, but it looks a bit odd. And if I use a different equity account, eg. Equity:Dividends, then the Equity:Earnings:Previous balance doesn't get calculated correctly, ie. it looks as though the company has a delicious balance of previous earnings when it has actually declared them as dividends. Thanks, Aragon -- You received this message because you are subscribed to the Google Groups "Beancount" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/beancount/6759a4bf-ad0a-4eca-b9e0-fa80c23b1899n%40googlegroups.com.
