tboldt writes:
> So, my question - what do you do when initiating gnucash on a set of
> accounts for accounts that existed prior to gnucash and so the money
> cannot be 'transferred from' any other account.
I think that it is confusing to think in terms of "transfers".
> Starting with more than zero seems to be a problem.
With double entry you not only start with zero, you stay there: debits
always equal credits.
You gave no details, so I'll make up an example:
You have $10,000 in cash, $15,000 in equipment that is fully paid for, and
$5,000 in supplies that you purchased on account. You have been keeping
your records on the backs of old envelopes, in Quicken, or in some other
makeshift fashion but you have decided to do things right and start using
Gnucash. How to transfer your records?
The $10,000 is an asset, specifically cash, so you debit the account
'Assets:Cash' $10,000. What to credit though? Well, it's your money:
credit yourself. How? 'Equity'. Credit the account 'Equity' $10,000 and
everything balances.
The equipment is also an asset, and you own it free and clear, so you treat
it similarly to the cash: debit 'Assets:Equipment' $15,000 and credit
'Equity' $15,000.
The supplies are also an asset, so you debit 'Assets:Supplies' $5,000.
However, you still owe on it, so it doesn't add to your equity. Instead it
adds to your liabilities: credit 'Liabilities:Accounts Payable:Acme, Inc'
$5,000.
You now have nice clear records showing that you have $30,000 in assets,
$5,000 in liabilities, and equity of $25,000.
--
John Hasler
[EMAIL PROTECTED]
Dancing Horse Hill
Elmwood, Wisconsin
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