Michael Contributions was likely the wrong term but I was thinking in terms of owner's contributions to the business which obviously can occur at any time not just when the books are split.
Agreed that any suggestions we might make here are not accounting advice. David On Mon, 2025-01-20 at 17:49 -0500, Michael or Penny Novack wrote: > On 1/20/2025 3:36 PM, David Cousens wrote: > > Michael, > > you have convinced me that it does make more sense to treat the > > contributions as an asset rather than a reduction in equity. > > > > David > > > "Contributions? I am confused. > > On the books of these businesses, equity represents the ownership > interests << in this special case, you are the sole owner --- but > there > COULD be multiple owners and the accounts under equity would track > that > >> If you make a contribution to the business (increase your > investment) then on the books of the business that would increase > YOUR > equity account. But since a sole owner, just undivided equity. The > debit > side would depend on the nature of this "contribution". > > On YOUR (personal) books the business is an investment, an asset. > When > you make a contribution (say pay a business expense using your > personal > CC) that is an increase in your investment (debit an asset) and a > credit > to your liabilities (the CC) > > Look, we aren't talking about gnucash here, but accounting. Please > note > that I lack "qualifications" to give accounting advice. > > Michael D Novack > > _______________________________________________ gnucash-user mailing list [email protected] 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.
