I had to look in my accounting textbook (_Accounting Principles_ 3d ed., Solomon, Vargo & Walher) to remeber the definition. Equity is the net investment in an asset. I have equity in my house, even though I still owe on the note. My equity would be the amount that I have paid in ($35k) on the total amount of the note ($45k).
Hope this helps, Micheal -- Micheal J. McEvoy [email protected] Coureur des Bois Data Systems (218) 235-0522 Ely, Minnesota Music is the pleasure the human mind experiences from counting without being aware that it is counting. Gottfried Leibniz On Sat, 24 Sep 2011, Craig Earls wrote: > This is a basic question that I want to sort out for the > documentation. I am writing a section on suggested account > structure. In my (admittedly naive) personal journal I use Assets, > Expenses, Liabilities, and Income at the top level. My > 401K/IRA/Brokerage Accounts are all tracked under the "Assets" branch. > The documentation for "hledger" suggests five top level accounts, the > four I have plus "Equity". Is there a fundamental difference between > "Equity" and "Assets"? My basic understanding puts both terms in the > set of "stuff I control". > > PS to keep things straight on the list I will prepend the subject line > on all documentation specific threads with "[DOCS]". They may not be > of interest to the entire list, bu I hope you will all chime in. > >
