Hi Adrein, I agree you would record the investment in a company as an asset. I don't know about elsewhere in the world but when you start a sole owner private company in Australia, you essentially become the only shareholder and the value of the share is the paid up capital of the company and has some implications for the legal liability of the owners for the debts of the company provided you have traded in accordance with the provisions of the company law. You can call the asset account whatever you like but something like
Asset:EquityinCompanyA Dr $1000 Bank:Cash Cr $1000 should be a reasonable way of recording it. You would then treat drawings/dividends from the company as Income in your personal books. The taxation aspects will be a lot more complex depending on whether the income is taxed in the hands of the company or it's owners and or both, which will be highly dependent on local taxation law. David Cousens -- View this message in context: http://gnucash.1415818.n4.nabble.com/Where-to-record-business-equity-in-your-personal-books-tp4692248p4692251.html Sent from the GnuCash - User mailing list archive at Nabble.com. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org 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.
