I agree with Justin. Other than "this is how it works" or "here's a workaround", I don't believe I've seen an argument challenging his proposal. Can I encourage you to consider this approach for a future release?
Am I correct in thinking that the other category that drains retained earnings is capital expenditure? Phil Diacono - > Dividends are a decrease in equity and can't be recorded in an 'Expense' > type account (although that's the current workaround and technically > wrong). Therefore what I suggest is to create a dividend account type > under > equity (equity currently has only 1 type of account) which can be used to > record dividend declarations. The value of this account can then be > adjusted from total income. This will give us the real 'Retained > Earnings'. > > Note that: The corresponding journal entry for recording in dividend > declaration account is 'dividend payable' (which is a liability account > created by user). To record a dividend paid, a second record is created in > 'dividend payable' against the journal 'current account' or 'cash > account'. > > Regards, > Justin Mathew -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-Dev-f1435356.html _______________________________________________ gnucash-devel mailing list gnucash-devel@gnucash.org https://lists.gnucash.org/mailman/listinfo/gnucash-devel