Patrick, Look carefully at point 2, one side of your transaction should be an expense as you are expending funds to buy stock eg Expense >> Stock Purchases rather than Stock on Hand ?
Cheers David H On Fri, 17 Dec 2021 at 21:20, Patrick Skelton <patrickskel...@gmail.com> wrote: > Hi, > > I am trying to get my head around double-entry accounting. I think I have > kind-of got it. I have just set up a stripped down set of accounts and > tried a handful of transactions, to see how they affect profit-and-loss and > the balance sheet. It all seems to make sense except that there is one > piece of information that seems to vanish, and I am worried this means I am > doing something wrong. > > My transactions beginning with all zero balances are: > > (N*ote:* I have added some dates to give context to my later question) > > 1. 1st Nov: I pay £100 into the business *Bank* financed by *Owner's > Equity*. > 2. 2nd Nov: I buy some paper costing £12, which comes from *Bank* and > goes into *Stock on Hand*. > 3. 3rd Dec: I sell a notepad for £12, which credits *Bank* and is > assigned to *Income - Sales*. > 4. 4th Dec: I transfer the cost of the paper used to make the notepad > (£1.00) from *Stock on Hand* to *Expenses - Cost of Materials*. > > The Balance Sheet shows £111. Liabilities are zero. Retained Earnings are > £11, which gives total equity of £111. Thus the sheet is balanced. > > My question is that no matter what report I run using whatever dates, I > cannot see the £12 I spent on stock. All I ever see is the £1 that I > decided was the cost of the paper taken from stock. > > Even if I do reports only for the month of November, I don't see the £12 I > paid for stock because the money came from my bank and went into stock, > which are both Asset accounts. > > Is there a better way to do these transactions so that I could ask the > question: how much have I spent on stock this month? > > I am a complete newbie so would welcome any help or advice (short of 'get > an accountant', which I would love to but can't afford). > > Kind wishes - Patrick > _______________________________________________ > 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. > _______________________________________________ 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.