Long, As long as i have been doing accounting, profit or gain has *never* been the difference between Assets and Equity. Assets = Liabilities + Equity
or in the extended form with the temporary accounts broken out separately from Equity: Assets =Liabilities + Equity + Income - Expenses. You can break that out even further to: Assets =Liabilities + Equity + Income - Expenses + Gains - Losses Any transaction which affects an asset, without being purchased via credit, i.e introducing a Liability ,has the same effect on Equity since such a transaction credits an Asset account and debits an Equity account and decreases both the account balances (or vice versa a debit to an asset has a corresponding split which is a credit to an Equity account and increases the balances of both accounts). Remember Income and Expense accounts are still Equity accounts, they are only maintained separately as temporary Equity accounts for the purposes of calculating profit. Trading accounts are similarly Equity accounts introduced for the purposes of tracking changes in capital values. It is the value in your trading account which is your gain or loss. Your assumptions are not correct! David ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ 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.
