The profits (or gain on sale) account is probably an Income account in the standard chart of accounts hierarchy
On Wed, Sep 18, 2024, 6:04 PM David Warren <da...@warren1.net> wrote: > Seems like you may want to read some basic accounting materials and > afterward decide what it is you really want to use gnucash to track over > time. Are you running a business selling music equipment? Or do you have a > hobby where from time to time you might upgrade or buy new equipment etc.? > > Buying $100 of music equipment in a basic accounting set up might be > Debit (increase) the music equipment asset account for $100 and > Credit (reduce) the checking account asset account by the offsetting $100 > > Then later selling that same original equipment for $120 would result in a > more complex entry of > > Debit (increase) checking account asset account by $120 > Credit (reduce) the music equipment account by $100 > Credit (increase) an equity profits account by $20 > > Depending on both the quantity of equipment and the frequency of trading, > you might elect to have multiple asset accounts to reflect different types > of equipment or even for individual pieces of equipment > > In standard accounting, I don't know what a Music Equipment Sold account > would represent. Though your equity account could be labeled "Profits from > music equipment sold" > > On Wed, Sep 18, 2024, 5:39 PM Boniforti Flavio <bonifort...@gmail.com> > wrote: > >> Hi. >> Still very noob here, so bear with me please. >> >> I've got the following accounts (among others): >> >> Music equipment >> Music equipment sold >> Checking account >> >> When I buy music equipment, I take the money from my checking account and >> add it to the "music equipment" account. >> When I sell music equipment, how should I register it? I thought that the >> account "music equipment" would decrease by the sold value, the checking >> account would increase by the same amount... but what happens with the >> "Music equipment sold" account? >> Or am I wrong in separating "music equipment" from "music equipment sold"? >> >> Thanks, >> F. >> >> https://www.instagram.com/boniforti_music >> https://soundcloud.com/boniforti_music >> https://bonny-j.bandcamp.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. >> > _______________________________________________ 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.
