Hi, David, Thank you for that. I have actually just kind-of worked that bit out but I would like the £8 spent on paper to become an asset. Is it simply then a case of entering a transfer from Expenses-Stock Purchases to Assets - Stock on Hand?
Kind wishes - Patrick On Fri, 17 Dec 2021 at 11:40, David H <hell...@gmail.com> wrote: > 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.
