> On May 19, 2023, at 09:40, Michael or Penny Novack > <stepbystepf...@comcast.net> wrote: > > On 5/18/2023 11:56 PM, David T. via gnucash-user wrote: >> Per the documentation: >> >> >> 10.3.5.11. Trial Balance >> >> >> Trial Balance lists the ending balances in all accounts as of a particular >> date. It is typically run at the end of an accounting period and is >> primarily used to ensure that the total of all debits equals the total of >> all credits. >> >> >> By definition, that means there *isn't* a start date. >> >> David T. > > > Also do note --- the trial balance was an important tool in the old days of > pen and ink on paper bookkeeping. All sorts of errors while entering numbers > or transcribing them during posting could lead to a condition of total debits > not equaling total credits. In other words, this was your warning that there > was an error somewhere, and that this error has a date in between the > previous date a trial balance was run and found correct and this one. > > You did not proceed with other reports, closing the books, etc. until the > error was found and corrected and the trial balance "clean". > > Might I point out that computerized accounting software like gnucash will NOT > allow entry of an out of balance transaction nor will a transcription error > be made. When I say won't allow I am including the special accounts orphan > and imbalance. In other words, you CAN enter a transaction not in balance as > far as the intended accounts are concerned; but the out of balance amount > will be a debit or credit in imbalance. So ...... > > A non-zero balance in the special account imbalance is just like a trial > balance not being in balance. I have never run a trial balance using gnucash, > just confirmed that the balance of imbalance was zero. > > Michael D Novack > > PS --- a clean trial balance does NOT mean the books are free of error. Just > that free of certain kinds of error. There are many other sorts of errors > possible (like putting something in the wrong account) that will not throw a > trial balance out of balance.
That's all correct *as long as there's only one commodity in the book*. As soon as you introduce a second commodity you have the opportunity for failing to record trading gains and losses and that will cause the book to be out of balance even though all of the transactions balance. This will be apparent if there's an automatically generated Realized Gains or Realized Losses line on the balance sheet report. The Trial Balance report with the price source set to average cost is the best tool for finding the accounts that need their gains or losses accounted for. Regards, John Ralls _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
