USA On Bal Sheet Equity reflects 'Opening Balances'

[thomas.sheldrake]

The title says it almost all.

I'm using GNUCASH and trying to get a good balance sheet out of it. I have two problems. First, the case is in two different currencies, and gnucash is using the wrong rate. I'm working on that...

The second problem is that it is using the wrong balance sheet accounts. It has assets and liabilities right (except for the exchange rate problem), but to show equity it is including three different 'opening balance' accounts.

I'm not an accountant but I understand the basics - I think! Isn't equity the difference between A and L?

 

[jeff dulow]

Normally equity would be the first account established which would be the initial transaction of your business. The first entry would be to Dr Cash and Cr Equity after that you would create the other accounts when you use the cash. Such as buying equipment Dr Equipment Cr Cash. If you put more cash in the business or earned money from the business the equity section would increase. Are you posting entries are trying to put balances in the system?

 

[thomas.sheldrake]

I am just having the app make these balance and income sheets and this is what they spit out. I have spent the better part of a day trying to figure out why the numbers are as they are, and I have no idea. This is for a class assignment.

 

[jeff dulow]

Thomas is there an actual problem you can send me so I can see what you are trying to do. The balance sheet looks very odd.

 

[Samir]

You have no capital accounts set up, so the opening balances are in effect those capital accounts. You have to have capital to start a business (and the books). The income statement looks fine.