What is the purpose of Equity account in GnuCash?

For example, I have income through Salary account 500$, after I have expense by buying book for 5$ (so in Expense:Books account is entry for 5$). But Nothing in Equity account is changing (it was before 0$ and it is now 0$).


  1. Why Equity account is not changing?
  2. What to do to make changes in Equity account? Please give me example.
  3. What for is used Equity account in GnuCash?

The Equity balance is your Assets (stuff you own) minus your Liabilities (debts you owe to others). It represents your "net worth" - how much money you would have when you would pay all your debts. When you want anything to show up in Equity, you need to make use of the asset and liability sheets.

As long as you only manage Income and Expenses, your equity won't change. When you want to "save" money so the saved up money appears as an Asset and thus affecty your Equity, book it as an expense to your Cash or Bank asset account.

For more information, check Chapter 3 of the GNUCash manual.

  • Not bad. 4 upvotes for reading the manual of a program I have never used. – Philipp Mar 4 '16 at 14:36

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