Hi, I am trying to get my head around double-entry accounting. I think I have kind-of got it. I have just set up a stripped down set of accounts and tried a handful of transactions, to see how they affect profit-and-loss and the balance sheet. It all seems to make sense except that there is one piece of information that seems to vanish, and I am worried this means I am doing something wrong.
My transactions beginning with all zero balances are: (N*ote:* I have added some dates to give context to my later question) 1. 1st Nov: I pay £100 into the business *Bank* financed by *Owner's Equity*. 2. 2nd Nov: I buy some paper costing £12, which comes from *Bank* and goes into *Stock on Hand*. 3. 3rd Dec: I sell a notepad for £12, which credits *Bank* and is assigned to *Income - Sales*. 4. 4th Dec: I transfer the cost of the paper used to make the notepad (£1.00) from *Stock on Hand* to *Expenses - Cost of Materials*. The Balance Sheet shows £111. Liabilities are zero. Retained Earnings are £11, which gives total equity of £111. Thus the sheet is balanced. My question is that no matter what report I run using whatever dates, I cannot see the £12 I spent on stock. All I ever see is the £1 that I decided was the cost of the paper taken from stock. Even if I do reports only for the month of November, I don't see the £12 I paid for stock because the money came from my bank and went into stock, which are both Asset accounts. Is there a better way to do these transactions so that I could ask the question: how much have I spent on stock this month? I am a complete newbie so would welcome any help or advice (short of 'get an accountant', which I would love to but can't afford). Kind wishes - Patrick _______________________________________________ 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.
