On Thu, 27 Apr 2000, [EMAIL PROTECTED] wrote:
> Equity is also where any net income (income-expenses) goes at the end
> of each period.
Speaking of this, how is it proposed to handle "accounting periods".
With computerized ledgers, it is convienent to be able to handle arbitrary
periods. The asset and liability accounts are not a problem because the
"balance" in them is really a balance. However, income/expense accounts
have a "balance" which is really the running total since the last reset --
the end of the previous period.
Now, if you have arbitrary periods, there is no place to close the accounting
period (xfer to equity) without messing up another overlapping period.
One solution is to close after every transaction. However, if you do this,
there is no real value in doing "double entry". It is just a verbose form of
single entry.
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