Flavio, Why would you need a Music equipment sold account in the first place?
If your business is making music then: when you buy equipment you credit your checking account and debit the Music Equipment asset account by the amount of the purchase; when you sell the equipment you debit your checking account and credit the music equipment account. In this case the equipment is not held for the purpose of selling it at a profit. You may however be subject to capital gains type taxes if they apply in your jurisdiction and the value of the equipment sold exceeds the thresholds for such taxes. The situation may however be slightly different if your business is actually retailing music equipment. In this case the Music Equipment account is essentially an Inventory account - still an asset account. You would normally in these circumstances set up an Inventory asset account which is a placeholder with two sub accounts Inventory:Music Equipment Purchases and Inventory:Music Equipment Sales. Your Income top level account will also need a subaccount Income:Sales and your Expenses top level acoount will need a sub account Expenses:Cost of Goods Sold (GoGS) The basic procedure is the same for purchases of equipment, credit the checking account and debit the Music Equipment Purchases sub account. When you make a sale only the difference between the cost of the equipment sold and the selling price is your income ( neglecting any sales tax issues which may also apply) so the following will be the basic procedure: Debit the Checking account for the total amount of the purchase paid by the customer; Credit the Income:Sales account by the total amount of the purchase; Credit the Inventory: MusicEquipment Sales account by the amount of the cost of the items sold; Debit the Expenses:Cost of Goods Sold account by the amount of the cosdt of the items sold. Your profit on the transaction is recorde by the difference between the Income:Sales account and the Expenses:Cost of Goods Sold account entries. Dealing with any applicable taxes will add additional steps to the accounting as will making allowances returns of purchases to suppliersof faulty equipment and returns of equipment to you with faults by customers. You should consult an accountant and consumer legislation in your jurisdiction in how to deal with these. David Cousens On Wed, 2024-09-18 at 23:37 +0200, Boniforti Flavio 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.
