The deposit of $60,000 CAD was credited to Income (which was defaulted
to USD). I had not thought about splitting income into two accounts,
Income CAD and Income USD. I just did that and it changed the balance
sheet. I named this fictitious business "None of your business" just
for fun.
None of your business Balance Sheet 06/30/2025
Assets
Assets
Current Assets
CAD Checking C$20,000.00 $14,800.00
USD Checking $29,800.00
Total Assets $44,600.00
Liabilities
Total Liabilities $0.00
Equity
Unrealized Gains $200.00
Total Equity $200.00
Total Liabilities & Equity $200.00
So, I still have $200 Unrealized Gains.
I just generated a P&L report, and I think it sheds a little light on this.
None of your business Profit & Loss For Period Covering 07/01/2024 to
06/30/2025
Revenues
Income
Income CAD C$60,000.00 $44,400.00
Total Revenue $44,400.00
Expenses
Total Expenses $0.00
Net income for Period $44,400.00
When the initial $60,000 CAD was entered, it was worth $45,000 USD at
the then current exchange rate. But now that income is worth only
$44,400 USD at the current exchange rate.
Now the remaining $20,000 CAD at the current exchange rate is worth
$14,800, rather than the $15,000 it would be if the exchange rate had
not changed.
So what I now see is that it is showing a different amount of income
when converted to USD, because of the change in exchange rate. When I
transferred the first $20,000 CAD to $15,000 USD, it was at the old
exchange rate, but would be worth only $14,800 USD at the current
exchange rate, and the difference is my Unrealized Gain.
I started this thread trying to understand what was meant by the
Unrealized Gain, and now I think I understand.
Thanks for your help.
- Norm -
On 8/28/2025 9:00 AM, [email protected] wrote:
Date: Wed, 27 Aug 2025 18:26:40 -0400
From: Michael or Penny Novack<[email protected]>
To:[email protected]
Subject: Re: [GNC] Currency Transfers result in Unrealized Gain (or
Loss)
Message-ID:<[email protected]>
Content-Type: text/plain; charset=UTF-8; format=flowed
On 8/26/2025 6:34 PM, Michael or Penny Novack via gnucash-user wrote:
On 8/26/2025 5:56 PM, Norm Samuelson wrote:
I deposited $60,000 into the CAD account.
? ? The debit account was the CAD bank account --- what was the credit
account? It was in what denomination? (if not CAD an exchange rate
involved as of that date
If I have to, will ask the questions on to a response. You skipped
answering this.
:I deposited 60,000 CAD to the CAD bank account. So that was the DEB+IT
side of that transaction. What was the CREDIT side (what account). This
is double entry bookkeeping. Every transaction must have equal debit and
credit totals.
Michael D Novack
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