On 7/11/2023 6:48 PM, Default User wrote:
Hi!
Is there a way to have Gnucash 4.13 (Debian GNU/Linux 12 Bookworm)
automatically calculate, and update "Equity" in the main accounts tab,
to show the "real" value of total Equity, after any action (or at least
transaction) that would affect "real" equity?
Example:
Start with the GnuCash "Common Accounts", as in gcashdata_1.gnucash
from the Tutorial and Concepts Guide, with all accounts set to $0.00.
Stop -- I understand your example. Your problem is that you do not
understand what accounts of type "income" and "expense" are. They are in
fact, "temporary" accounts of fundamental type "equity". They are being
kept separate so that they may be viewed. It is the "close the books"
operation that would close them out to equity.
Look at a Balance Sheet report. Do you see a "retained earnings" of
"retained losses". Those aren't accounts but the net of all income and
expense accounts whose balances have not been transferred to equity (by
a close the books). So if you want to see your actual equity, you can
run this report and add/subtract. Or of course, do a "close the books"
<< trust me, you probably won't ever bother* >>
History -- In the early days of double entry bookkeeping there were no
income/expense accounts and income or expense transactions WERE written
to equity. That meant you could immediately see "what is my equity
today?" but would have to look through the journal to answer a question
like :how many ducats of interest did we get last month?". That's how
the temporary accounts of type income and expense came about.
But more important, why do you want to know instantaneous equity? Having
lots of equity, having increasing equity, might not save you if having a
"cash flow" problem. In other words, lots of things determine economic
well being.
Michael D Novack
* Not bother because gnucash can produce the report you would get during
a traditional "close the books" without closing the books.
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