On 2022-12-02 07:21, Michael or Penny Novack wrote:
> 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. With respect, I think that's a dangerous suggestion. Imbalance does not normally appear anywhere, or if it does it appears with a balance of zero. When it appears with a nonzero balance, that is very useful because it points out that there was an unbalanced transaction someplace, which you need to find and fix. That's a very useful indicator, not to be given up lightly. It's the same principle as writing code -- if your code compiles with any error messages at all, you don't say "oh, this one doesn't matter," even if that's true. You eliminate whatever the compiler didn't like. Otherwise a time will come when that message _does_ matter, in the same situation or a different one, and you'll have a bug in your program. Much better, in my opinion, is to create a balanced transaction. If the pound is actually paid in, the transaction would be a debit to Cash or Bank and a credit to Share Capital. If the pound is completely fictitious, the debit would be to an Expense account (which could also be used for other expenses of setting up the business) and credit to Share Capital. (And I am astonished that Kirkby's accountant would suggest having unbalanced books. As far as I know, double-entry bookkeeping is standard accounting practice in the UK as well. Perhaps the accountant just assumed that Kirkby knew that and would select the appropriate account for the debit side of the transaction, or perhaps the accountant did suggest an appropriate debit account but Kirkby didn't tell us about it.) Stan Brown Tehachapi, CA, USA https://BrownMath.com> _______________________________________________ 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.
