On 4/24/2019 2:15 AM, Justin Mathew via gnucash-user wrote:
I certainly prefer the approach of declaring dividends as a contra acunt to
Retained Earnings and/or debiting it directly to Retained Earnings but it
will require closure of the books to provide retained earnings to handle it
properly.
And hence my suggestion to make GnuCash handle such alternate ways too.
I think there is some important confusion about "retained earnings" (or
losses) as appearing on the Balance Sheet report. This is a VIRTUAL
account provided because gnucash is not requiring closing the books.
I agree with the concept that if the entity is a corporation, dividends
be paid out of retained earnings (regular dividends at least) and I
learned in the old days where this was required for corporations. But if
you want to do that you should have a REAL (as opposed to virtual)
account for "retained earnings".
Again, having learned bookkeeping in the old days, I see nothing about
gnucash that would prevent me from doing a manual close the books to a
real "retained earnings" account under equity. This isn't about what you
can or cannot do in gnucash but a matter of knowing how to use gnucash
to do what you want to do.
Michael D Novack
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