I'm not at all sure what you are asking us (will have to guess)
You asked your accountant and got the answer from him or her. So that's where it goes. Essentially you are telling us that by convention, books of a business entity in the UK start with an equity balance of 1, not zero. The latter is normal for double entry bookkeeping.
So my GUESS is you are asking us, what should be the other side of the transaction that enters this amount? << again, this is not really a gnucash question since would be the same question no matter how the books were kept >>
Personally, I'd probably use Imbalance as the most logical. After all, you are in effect telling us that by convention, books for a business entity in the UK start out out of balance by 1.
Michael D Novack On 12/2/2022 8:46 AM, Dr. David Kirkby wrote:
Hi, When a company is set up in the UK, if by just one person, they get a share which has a nominal value of £1. I'm trying to put my accounts starting this financial year into GnuCash. I was not sure where this £1 should go - if anywhere. So I asked my accountant. See below my question in bold, and his answer in red. * "4) Where should the initial nominal £1 share when the company is set up be recorded? Should that show as £1 equity in the company as an opening balance, or is it ignored in accounts submitted after the first submission? * *The opening £1 share is shown and brought forward share capital in the accounts under the ‘capital and reserves’ section."* I assumed this meant I added £1 to the Equity, so I created an account Equity -> Capital and Reserves -> Share Capital with the intention of adding the £1 share there as an opening balance. But it is not possible to edit the opening balance of that account. I assume it's me, as the director, that owns that £1 share. I guess, since it's only a very small amount, I can ignore it, but it would be nice to know where it should go. Any thoughts on where this should go? Dr David Kirkby Ph.D Email: drkir...@kirkbymicrowave.co.uk Web: https://www.kirkbymicrowave.co.uk/ Kirkby Microwave Ltd (Tel 01621-680100 / +44 1621-680100) Stokes Hall Lodge, Burnham Rd, Chelmsford, Essex, CM3 6DT. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
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