It's been rumoured that Bill Gribble said:
>
> tboldt <[EMAIL PROTECTED]> 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.
>
> This is what "Equity" accounts are good for. Make an account of type
> Equity called "Retained Earnings" or some such, and have your opening
> balances be transfers from there to your bank accounts.
>
> I bet Linas is winding up for his knockout explanation of exactly what
> Equity accounts are all about, so I'll leave him to it.
assets - liabilities == equity
(to be actually accounting-wise correct, its actually
liabilities - assets == equity which is why debits increase assets, but
thats a whole nuther story, which I think we go to the end of.)
Its nothing more than that. Its your 'net worth'. But since it and
assets add to zero -- bingo -- everything automatically balances.
Its so 'obvious' it almost sounds dumb.
--linas
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