Are you mixing your personal and business in the same GnuCash file?
On 1/17/20 2:07 PM, Don Ireland wrote: > What I was referring to is the checking account I use for my business. When I > make what the bank sees as a deposit, I need to account for it in my books. > > My books includes an asset account called Business Checking. Wouldn't that > deposit be considered a credit? Based on what you've described, it sounds > like you'd treat it as a debit. > > I need to account for moving money from my personal checking account into the > business account. I entered it in to my personal check register. Now I need > to separately account for it in the business books. > > On January 17, 2020 3:50:03 PM CST, Adrien Monteleone > <adrien.montele...@lusfiber.net> wrote: >> Speak to a local CPA for details for your situation and jurisdiction, >> but from what you can find in a basic accounting text book, generally >> both contributions (capital investments) and distributions (draws) are >> equity accounts. >> >> The tree would look something like this: >> >> Equity >> |_Opening Balances (already exists) >> >> |_Owner’s Equity >> |_Investments >> |_Capital Investments >> |_Reimbursements >> |_Earnings >> |_Dividendscurl >> 'https://tangerine-tulip-8sj7.squarespace.com/api/commerce/orders/export?orderStates=PENDING%2CFULFILLED%2CCANCELLED&productType=&productId=&includeProductForm=false&orderSubmittedOnMin=2018-11-23T19%3A14%3A03.056Z&orderSubmittedOnMax=2020-01-18T07%3A59%3A59.999Z' >> -H 'User-Agent: Mozilla/5.0 (X11; Ubuntu; Linux x86_64; rv:72.0) >> Gecko/20100101 Firefox/72.0' -H 'Accept: >> text/html,application/xhtml+xml,application/xml;q=0.9,image/webp,*/*;q=0.8' >> -H 'Accept-Language: en-US,en;q=0.5' --compressed -H 'DNT: 1' -H >> 'Connection: keep-alive' -H 'Referer: >> https://tangerine-tulip-8sj7.squarespace.com/config/commerce/orders' -H >> 'Cookie: SS_MID=8eaefbac-45bf-4f31-8e67-ecc1c580eee1; >> IR_gbd=squarespace.com; >> IR_9084=1579299517019%7Cc-13076%7C1579299109123%7C%7C; >> IR_PI=5b9f1e10-3976-11ea-b100-061034f1b114%7C1579385509123; >> SS_ANALYTICS_ID=3ea228cc-4cf5-459f-9904-1d3b25f624e4; >> __zlcmid=wIiqRZHeptxSLP; SS_SESSION_ID=60b42e4b-16ea-40bb-b7a1-ca6b35d6854b; >> SS_MATTR=eyJ2IjoyLCJhIjpbImRpcmVjdCIsIiIsIiIsIiIsIiJdLCJkIjoiMjAyMC0wMS0xNyAyMjoxNjo1Ni45MDMifQ==; >> _gcl_au=1.1.630127523.1579299418; >> crumb=saTUnBhE+Dsv6Ojy4pfcPfWTsV3cFqNAmWFw3A4aX5OJ; >> member-session=1|mGHszCC84SpEsx9ZVB6XLEQ53+ZaAU0FoudlR6i7A1tG|syPynu+Bf+W893cf1LdoKDTxzfTAz9XXOi0+MUG4Z6Y=; >> ss_lastid=eyJpZGVudGlmaWVyIjoidGFuZ2VyaW5lLXR1bGlwLThzajcifQ%3D%3D' -H >> 'Upgrade-Insecure-Requests: 1' -H 'TE: Trailers' >> |_Draws >> |_Owner’s Draws >> >> |_Retained Earnings (already exists, either actually, or virtually) >> >> (there might be other types of Draws or Earnings which is why I show >> those parent accounts with a specific child. You could just leave the >> child accounts off if you don’t have need for them, and refactor later >> if you do. Other types of Investments might also include land, >> buildings, equipment, product, etc.) >> >> All of these accounts should be created as type ‘Equity’ >> >> >> A sample transaction when you make contributions to your business would >> be: >> >> Dr. Cash/Checking, etc. >> Cr. Equity:Owner’s Equity:Investments:Capital Investments >> >> >> A sample transaction when you take a draw would be: >> >> Dr. Equity:Owner’s Equity:Draws:Owner’s Draws >> Cr. Cash/Checking, etc. >> curl >> 'https://tangerine-tulip-8sj7.squarespace.com/api/commerce/orders/export?orderStates=PENDING%2CFULFILLED%2CCANCELLED&productType=&productId=&includeProductForm=false&orderSubmittedOnMin=2018-11-23T19%3A14%3A03.056Z&orderSubmittedOnMax=2020-01-18T07%3A59%3A59.999Z' >> -H 'User-Agent: Mozilla/5.0 (X11; Ubuntu; Linux x86_64; rv:72.0) >> Gecko/20100101 Firefox/72.0' -H 'Accept: >> text/html,application/xhtml+xml,application/xml;q=0.9,image/webp,*/*;q=0.8' >> -H 'Accept-Language: en-US,en;q=0.5' --compressed -H 'DNT: 1' -H >> 'Connection: keep-alive' -H 'Referer: >> https://tangerine-tulip-8sj7.squarespace.com/config/commerce/orders' -H >> 'Cookie: SS_MID=8eaefbac-45bf-4f31-8e67-ecc1c580eee1; >> IR_gbd=squarespace.com; >> IR_9084=1579299517019%7Cc-13076%7C1579299109123%7C%7C; >> IR_PI=5b9f1e10-3976-11ea-b100-061034f1b114%7C1579385509123; >> SS_ANALYTICS_ID=3ea228cc-4cf5-459f-9904-1d3b25f624e4; >> __zlcmid=wIiqRZHeptxSLP; SS_SESSION_ID=60b42e4b-16ea-40bb-b7a1-ca6b35d6854b; >> SS_MATTR=eyJ2IjoyLCJhIjpbImRpcmVjdCIsIiIsIiIsIiIsIiJdLCJkIjoiMjAyMC0wMS0xNyAyMjoxNjo1Ni45MDMifQ==; >> _gcl_au=1.1.630127523.1579299418; >> crumb=saTUnBhE+Dsv6Ojy4pfcPfWTsV3cFqNAmWFw3A4aX5OJ; >> member-session=1|mGHszCC84SpEsx9ZVB6XLEQ53+ZaAU0FoudlR6i7A1tG|syPynu+Bf+W893cf1LdoKDTxzfTAz9XXOi0+MUG4Z6Y=; >> ss_lastid=eyJpZGVudGlmaWVyIjoidGFuZ2VyaW5lLXR1bGlwLThzajcifQ%3D%3D' -H >> 'Upgrade-Insecure-Requests: 1' -H 'TE: Trailers' >> >> If this is a distribution of profits, (and not just a draw) then you’d >> use the Dividends account: >> >> Dr. Equity:Owner’s Equity:Earnings:Dividends >> Cr. Cash/Checking, etc. >> >> >> This will keep all of these transactions in the Equity part of the >> tree. They will not affect Income or Expenses, but they will affect >> assets as money is put into the business or taken out. >> >> Note that Capital Investments don’t decrease as you take Draws or >> Dividends, and nothing ever decreases the Draws or Dividends, but all >> three affect the parent account "Owner’s Equity” balance appropriately. >> The Earnings & Draws parts of the tree will generally have ’positive’ >> sign balances if you aren’t reverse balancing accounts, or ’negative’ >> sign balances if you are. (for all credit accounts) This is because >> those two accounts are ‘contra’ accounts from normal Equity type >> accounts, meaning they will have the opposite balance expected for >> Equity, that is, a debit balance is normal, instead of a credit balance >> as normal. >> >> But certainly, how this is setup or done is entirely dependent on your >> exact form of your business and legal situation and requirements, which >> is why you should really, really, really get a local CPAs advice. >> >> Regards, >> Adrien >> >> p.s. - though it may not matter since you might not be using such a >> transaction, your below example of depositing money into a checking >> account wouldn’t be a credit to it. As you are increasing an asset, it >> would be a debit for that side of the transaction. >> >> >>> On Jan 17, 2020 w3d17, at 3:17 PM, Don Ireland >> <gnuc...@donireland.com> wrote: >>> I'm having trouble figuring out the best way to handle owner >> contributions and distributions in gnucash. I understand them in >> concept but I'm just confused as to how the accounts get set up. >>> My 1st thought was to create an asset account called Owner >> Contributions and another called Distributions. But then when when I >> take Distributions, unless I take the funds from this contributions >> account, it'll just continue to grow. >>> Plus when I credit this account but deposit the money in the checking >> account, gnucash would see both as credits. So then I thought maybe >> it's a liability account but that still leaves the question as to >> separating the contributions and distributions. >>> Do I create one account called Contributions & Distributions and >> credit/debit this single account? Is it a liability account? >>> Don Ireland >> _______________________________________________ >> gnucash-user mailing list >> gnucash-user@gnucash.org >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> If you are using Nabble or Gmane, please see >> https://wiki.gnucash.org/wiki/Mailing_Lists for more information.curl >> 'https://tangerine-tulip-8sj7.squarespace.com/api/commerce/orders/export?orderStates=PENDING%2CFULFILLED%2CCANCELLED&productType=&productId=&includeProductForm=false&orderSubmittedOnMin=2018-11-23T19%3A14%3A03.056Z&orderSubmittedOnMax=2020-01-18T07%3A59%3A59.999Z' >> -H 'User-Agent: Mozilla/5.0 (X11; Ubuntu; Linux x86_64; rv:72.0) >> Gecko/20100101 Firefox/72.0' -H 'Accept: >> text/html,application/xhtml+xml,application/xml;q=0.9,image/webp,*/*;q=0.8' >> -H 'Accept-Language: en-US,en;q=0.5' --compressed -H 'DNT: 1' -H >> 'Connection: keep-alive' -H 'Referer: >> https://tangerine-tulip-8sj7.squarespace.com/config/commerce/orders' -H >> 'Cookie: SS_MID=8eaefbac-45bf-4f31-8e67-ecc1c580eee1; >> IR_gbd=squarespace.com; >> IR_9084=1579299517019%7Cc-13076%7C1579299109123%7C%7C; >> IR_PI=5b9f1e10-3976-11ea-b100-061034f1b114%7C1579385509123; >> SS_ANALYTICS_ID=3ea228cc-4cf5-459f-9904-1d3b25f624e4; >> __zlcmid=wIiqRZHeptxSLP; SS_SESSION_ID=60b42e4b-16ea-40bb-b7a1-ca6b35d6854b; >> SS_MATTR=eyJ2IjoyLCJhIjpbImRpcmVjdCIsIiIsIiIsIiIsIiJdLCJkIjoiMjAyMC0wMS0xNyAyMjoxNjo1Ni45MDMifQ==; >> _gcl_au=1.1.630127523.1579299418; >> crumb=saTUnBhE+Dsv6Ojy4pfcPfWTsV3cFqNAmWFw3A4aX5OJ; >> member-session=1|mGHszCC84SpEsx9ZVB6XLEQ53+ZaAU0FoudlR6i7A1tG|syPynu+Bf+W893cf1LdoKDTxzfTAz9XXOi0+MUG4Z6Y=; >> ss_lastid=eyJpZGVudGlmaWVyIjoidGFuZ2VyaW5lLXR1bGlwLThzajcifQ%3D%3D' -H >> 'Upgrade-Insecure-Requests: 1' -H 'TE: Trailers' >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. > Don Ireland > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. -- Stephen M Butler, PMP, PSM stephen.m.butle...@gmail.com kg...@arrl.net 253-350-0166 ------------------------------------------- GnuPG Fingerprint: 8A25 9726 D439 758D D846 E5D4 282A 5477 0385 81D8 _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
