I'm surprised no one has mentioned https://www.gnucash.org/docs/v4/C/gnucash-guide/basics-accounting1.html#basics-accountingequation2
That's the Tutorial & Guide page that explains the concept. David T. On August 31, 2022 10:15:04 AM GMT+03:00, Gyle McCollam <gmccol...@live.com> wrote: >Neal, >Your welcome. I see a few others have responded with similar thoughts and >explanations. I'm sorry I forgot to respond to all, so the list did not see >my original email, but as I said other replied with similar answers, but in >more detail. > >Don't worry, I trust you will get there. I'm sure there are engineering >concepts that we accountants would not understand immediately. The key to >this is that at any point in time (Income - expenses = 🔺Equity). So if your >income and expenses aren't zero (close Books at the end of the year), you have >to add this expression to A=I (+/-) Eq to get it to equal. > > >Thank You, > >Gyle McCollam > >Gyle McCollam > >gmccol...@live.com<mailto:gmccol...@gyleshomes.com> email > >________________________________ >From: W. Neal Lewis <wnle...@southwind.net> >Sent: Tuesday, August 30, 2022 9:24 PM >To: Gyle McCollam <gmccol...@live.com> >Subject: Re: [GNC] Can someone tell me how A-L=Eq+(I-Ex) is correct? > >Gyle, > >Thank you for your reply. > >Let me think about it for a while. > >It does not yet make sense to my Engineering brain. > >Sorry to be so dense, but terms as well as numbers must balance for an >equation to be correct. > >Best regards, > >Neal Lewis > > > >On 8/28/22 6:28 PM, Gyle McCollam wrote: >At the end of the year I (income) - Ex (expenses) is your increase/decrease, >depending on whether the number is positve or negative, to equity for the year >and at any given point during the year it is your increase/decrease YTD equity >figure. So realistically, when you added +(I-Ex) and it should be minus Ex, >you haven't really changed the equation A=L+Eq. > > >Thank You, > >Gyle McCollam > >Gyle McCollam > >gmccol...@live.com<mailto:gmccol...@gyleshomes.com> email > >________________________________ >From: gnucash-user ><gnucash-user-bounces+gylemc=gmail....@gnucash.org><mailto:gnucash-user-bounces+gylemc=gmail....@gnucash.org> > on behalf of W. Neal Lewis ><wnle...@southwind.net><mailto:wnle...@southwind.net> >Sent: Sunday, August 28, 2022 6:38 PM >To: gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> ><gnucash-user@gnucash.org><mailto:gnucash-user@gnucash.org> >Subject: [GNC] Can someone tell me how A-L=Eq+(I-Ex) is correct? > >I will agree that by mathematical logic, Assets-(Liabilities)=Equity. ∴ >Assets+(Liabilites)-(Liabilities)=Equity+Liability, or stated more >simply, A=Eq+L. I have added Liability to both sides ∴ both sides remain >equal. > >However, although (A+L)=Eq, (A+L)≠Eq+(I+Ex). I have added a term to the >right side that is most decidedly not on the left ∴ they cannot be equal. > >∴ A and L must be terms that include other factors. > >Not good at accounting, I will ask what those other factors are. > >I want to use GnuCash but I am having trouble getting my mind to accept >an equation that is not correct unless terms are redefined. > >Please help me with my (obviously) incorrect understandings. > >Thank you, > >Neal Lewis >_______________________________________________ >gnucash-user mailing list >gnucash-user@gnucash.org<mailto:gnucash-user@gnucash.org> >To update your subscription preferences or to unsubscribe: >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. > >_______________________________________________ >gnucash-user mailing list >gnucash-user@gnucash.org >To update your subscription preferences or to unsubscribe: >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. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: 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.
