On Wed, 11 Mar 2020, 7:42 am David Cousens,
wrote:
>
> Do you know if GnuCash has a flag indicating whether the books have been
> closed formally or is just the presence or absence of the closing
> transactions used to detect this?
>
No such flags exist. Only the presence of Closing Transactions
Christopher,
In another post on this thread in reply to Mike Novak's reply to an earlier
post I outlined how Equity:Retained Earnings is generally used in accounting
theory and the distinction between contributed capital and earned capital
usually made in corporate accounting. The Retained Earnin
Brian,Michael
I did misunderstand Brian's original question.
My comment below is a general accounting perspective based on general
accounting theory for corporations ( Financial Accounting Horngren etal 5 th
edition, Accounting Theory Godfrey etal Wiley Australia (Accounting Theory
Kahn Wiley U
Christopher, my error. If you re-read the original post the transaction
was posted Assets:Cash and Equity:Shareholder Distribution. Liability
was not in the equation. Basically, your comments confirm that the
GNUCash automatic calculation is rudimentary and to get a true
"retained earnings" that
Just for the record,
That should be a reduction of cash *and* a reduction of ’Shareholder
distribution’, not an increase. You aren’t increasing your liability by paying
it down.
Dr. Liability:Shareholder Distribution
Cr. Cash
The liability is increased via a transaction with Retained Earnings.
The right answer will be to submit the Transaction Report to the
accountant, have him/her calculate the Retained Earnings and Shareholder
Distribution for you, then you pay your shareholders via Assets:Bank/Cash
-> Liability:Shareholder (and later Liability:Shareholder ->
Expenses:Shareholder Divid
> 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
This question MAY require delving into "accounting for corporations when
using gnucash". It may be that for corporations, the usual process of
not closing the books and having gnucash showing a VIRTUAL account
"retained earnings" isn't going to work well for corporations << where
dividends paid
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
> de
Brian,
Brian the Retained Earnings is a component of the total Equity of the
business that records what the operation of the business has contributed to
the Equity. When a distribution is paid it is paid out of Equity and if it
is debited to the Shareholder Distributions and credited to the Asset:
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