Re: (no subject)

Hi Eneko, The full accounting equation is Assets = Liabilities +Equity+(Income -Expenses) where Income and Expense accounts are temporary Equity accounts which record the changes in equity during the current accounting period (usually a financial year). You can rewrite this as Equity = Assets -

Re: Profit and loss/Cash Flow reporting question

Couple of thoughts: A company cannot buy itself. If this is a sole proprietorship, the OP could take funds out to pay the note from an owner's draw account. The interest probably would not be deductible by the business, but instead by the buyer on his tax return. On the other hand, if it is

[no subject]

Hi all bytes & money masters :) In the Accounting Equation section of the GnuCash Guide it is stated that: *you could have an increase in assets if you have a parallel increase in liabilities*. I do not well understand

Re: Profit and loss/Cash Flow reporting question

On 5/31/2017 4:13 PM, Martijn Heuts wrote: Good afternoon and thank you for your answer.So I understand now that the cash flow report and P can be different and you explained why. I owe a business loan to the previous owner (owner financed). I made a payment to her and I was thinking this