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.
Hi David and Andrien,
‐‐‐ Original Message ‐‐‐
On Friday, April 19, 2019 5:05 PM, David Cousens
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
I’d suspect, more likely than not, if I were running a business that needed
such accounting, I too would close the books each year. It would be nice if GC
handled Equity accounts without having to do so, but as-is, the software is
certainly usable for a more formal business case.
Regards,
Adrie
Hi Justin
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.
That said there is nothing technically wrong in acc
David,
Thanks for joining the conversation.
> If you make the Dividends Declared account a child account of Retained
> Earnings ,i.e a contra account in accounting terms, any dividend amounts
> will be automatically deducted from Retained Earnings as suggested on the
> following site.
> https://w
Justin,
If you make the Dividends Declared account a child account of Retained
Earnings ,i.e a contra account in accounting terms, any dividend amounts
will be automatically deducted from Retained Earnings as suggested on the
following site.
https://www.accountingcoach.com/blog/recording-dividend-
Oh yes, it does!
As mentioned in my other email to John Ralls, the reason I started this thread
in the dev mailing list is to figure out a fix for the software, at least for
the next release.
And I am not sure how did this topic get divided into two threads.
-
Regards,
Justin Mathew
mjus...@p
Certainly,
But it serves as a temporary workaround till then.
Regards,
Adrien
> On Apr 16, 2019, at 10:05 AM, Justin Mathew wrote:
>
>> I understand that you would have two ‘Retained Earnings’ lines, one being
>> the actual account and the other being the calculated amount by GnuCash. The
>>
> I understand that you would have two ‘Retained Earnings’ lines, one being the
> actual account and the other being the calculated amount by GnuCash. The sum
> of the two should be the true amount. This means you can’t submit the report
> as-is, but you could certainly export to a spreadsheet f
If you create an Equity:Retained Earnings account and debit it, while crediting
Dividends Payable (the formal method) does this not show up on the Balance
Sheet?
I understand that you would have two ‘Retained Earnings’ lines, one being the
actual account and the other being the calculated amoun
Christopher,
> The "Retained Earnings" part of the Balance Sheet has nothing to do with
> dividends.
>
> IIUC on the balance sheet date X, the retained earnings simply means the
> total income up to date X, minus total expenses up to date X.
Don't get me wrong, the 'retained earnings' anywhere
The "Retained Earnings" part of the Balance Sheet has nothing to do with
dividends.
IIUC on the balance sheet date X, the retained earnings simply means the
total income up to date X, minus total expenses up to date X.
If the books were 'closed' on date X, the income&expenses would be zeroed
out
Maf,
> you should keep replies on-list, others can contribute and maybe in the future
> the thread can save a question being asked in the first place "reply All"
> in your email client is a good way.
Opps, I had read about it, but missed it in the heat of replying.
Will keep that mind hencefo
Hi Justin,
you should keep replies on-list, others can contribute and maybe in the future
the thread can save a question being asked in the first place "reply All"
in your email client is a good way.
I think it is a bit of a technical distinction, GAAP left over from the days
of paper boo
Hi Justin,
while it is contrary to the advice given in the link you supplied, I've always
recorded dividend payouts as an Expense - but it is one of a handful that are
excluded from the corporation tax calc, as they are declared after tax / from
profits.
My accountant has never complained -
Hi,
I am trying to record cash dividend payoffs in gnucash. As per accounting
basics, the 'Retained Earnings' is the company's net profit (minus dividends as
well).
I also read this - https://www.double-entry-bookkeeping.com/capital/dividends/
which explained the same steps that I did. Or did
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