> On Tue, 10 Mar 2020 at 01:02, Brian via gnucash-user < > gnucash-user@gnucash.org> wrote: > > > I'm wondering if GNUCash is actually calculating RETAINED EARNINGS > > properly. Because after issuing a distribution to shareholder the > > Retaining Earning calculation increased by Net Income but did not > > decrease by Asset:Cash which was debited and credited to > > Equity:Shareholder Distribution. > > > > The calculation of Retained Earnings and Unrealized Gains in the > Balance Sheet is rather primitive, and has been as such since nearly > forever. > > Retained Earnings = sum total of income less expenses at the > balance-sheet date. > Unrealized Gains = sum total of (asset-liability) value, minus sum > total of (asset-liability) cost.
Christopher, then I believe you are saying to get a proper "retained earnings", which recognizes the reduction of Assets:Cash and increase to Liability:Shareholder distribution, that one would need to properly close the books by moving income and expense to a Liability:Retained Earnings sub-account? _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
