20

That's Imbalance-USD (or whatever your default currency is). This is the default "uncategorized" account. My question is, is it possible to get the "unbalanced" account to zero and eliminate it? Yes, it's possible to get this down to zero, and in fact desirable. Any transactions in there should be reviewed and fixed. You can delete it once you've emptied ...


19

I had to implement a simplistic double-entry accounting system, and compiled a list of resources. Some of them are more helpful than others, but I'll share them all with you. Hope this helps! Reference Information Simplifying accounting principles for computer scientists: http://martin.kleppmann.com/2011/03/07/accounting-for-computer-scientists.html See ...


15

The ”standard“ thing to do, after double checking your numbers to see if you can find or remember the actual reason for the discrepancy, is to use an Income account for ”extra“ money and an expense account for ”lost“ money. The Imbalance account is meant as a temporary placeholder for monies not yet put into their right account. I personally use Income:...


13

It's income. Create an income account for it, or use a broader “miscellaneous income” account, depending on how precise you want to be.


10

If you were a business, all your assets would have a dollar value, so when you sold them you'd decrease the amount of assets by that amount and increase in cash, and if there was a profit on the sale it would go in as income, if there was loss it would count as a cost (or a loss)... so if there was a profit it would increase Equity, a loss then it would ...


9

I just decided to start using GnuCash today, and I was also stuck in this position for around an hour before I figured out what to do exactly. The answer by @jldugger pointed me partially on the right track, so this answer is intended to help people waste less time in the future. (Note: All numbers have been redacted for privacy issues, but I hope the ...


9

The thing is that you only need one entry, not two. That's the beauty of double entry - since you have double entry system, every transaction will create two entries. So you don't need to create two transactions, you only need one. So you got a $30 gift. You credit Income:Gifts and on the other side Assets:Checking. Your general ledger entry (Menu->Tools->...


9

Accounts track value: at any given time, a given account will have a given value. The type of account indicates what the value represents. Roughly: An asset is something you control that's worth something, and the value is how much it's worth. A liability is something you owe someone else, and the value is how much you owe them. Equity is your net worth: ...


8

Does this mean that double entry book-keeping is practically a blockchain, with each block being a transaction? Not exactly. In double entry book-keeping, every institution keep its own accounts that reflects the truth. This means there are 2 version of truth and there is reconciliation between these 2 truths to agree on actual truth. In blockchain, there ...


6

Typically in GnuCash, account balances that exist at the beginning of the time you're keeping records for are balanced by entries in an Equity account “Equity:Opening Balances”, which is part of the default set of accounts created for you. This account is really just a placeholder so that everything balances, and that's perfectly normal. So, just enter “...


6

You'll have a certain number of shares of each fund in your pension. You purchase a certain number of shares with the "pension" portion of your paycheck. This will be different each time because the share price fluctuates. To see the changing value of your pension, you update the price(s) of your fund(s). How often you do this is up to you, though if it'...


6

Your first and second paragraphs are two different cases. Moving money between a checking account and a savings account will credit Cash and debit Cash, making a GL transaction unnecessary, unless the amounts in the two bank accounts are tracked as two separate GL accounts. You might have account 1001 (Cash-Checking) and account 1002 (Cash-Savings). In that ...


6

For the purpose of personal finance, treating $500 as Interest Expense is sufficient. For business accounting, it involves making the $500 a contra-liability and amortizing it as interest expense over the course of life of the loan.


6

Like for anything with personal accounting, it kind of matters why you're tracking the information. If you're trying to have your accounting match what the tax authorities think about your income, you probably want to treat these payments the same way. In the United States in particular, taxability of credit card rebates and incentives is surprisingly not ...


6

Per IRS Private Letter Ruling 141607-09 : "The portion of the credit card purchases that Taxpayers can either receive back in cash or request Company to pay to a charity does not constitute gross income under § 61" Your cash back should be considered a discount which would go into a contra-expense account when received by you.


6

One thing I need to separate out and track a little better is planned / budgeted expenses (where I've budgeted some funds for household projects, such as renovations). Double Entry Book Keeping has nothing to do with budgeting. It's designed to help keep track of expense and assets across multiple accounts. I believe what your looking for is a a Zero Sum ...


5

The actual "sale" in this case was for $50, so you should credit the full $50 to the Sales Account. To balance this entry you would make two opposite postings. A $10 debit to the expenses account and a $40 debit to Accounts Receivable. This ensures the full $50 payment is balanced on both sides, whilst only $40 is expected to be received. The $10 is ...


5

I'm a mathematician, not an accountant. But my feeling has been that the distinction between Asset and Liability is mainly a sign convention, and comes from a wish to avoid negative numbers. Suppose you take out a loan for $1000 and deposit the proceeds in your bank account. Under normal accounting conventions, your bank account is an Asset and the loan ...


5

I'm not sure there's a good reason to do a "closing the books" ceremony for personal finance accounting. (And you're not only wanting to do that, but have a fiscal year that's different from the calendar year? Yikes!) My understanding is that usually this process is done for businesses to be able to account for what their "Retained Earnings" and such are for ...


5

It's still an asset because you're keeping it on your books in an interest bearing account. And it's still also a liability because as you note, the money is not technically yours and you owe it to the renter until you settle at the end of the lease/term. Thus, I'd recommend setting the security deposit up in two accounts - an asset account and a liability ...


4

Should I just create a new account code, i.e. Lawyer's Trust Account? Yes, you should. I have a generic "escrow" account just for that.


4

Capital is an Asset. Decreasing value of capital is the decreasing value of an asset. When you buy the forex asset * DR Forex Asset * CR Cash When you sell * DR Cash * CR Forex Asset The difference is now accounted for Here is how: Gains (and losses) are modifications to your financial position (Balance sheet). At the end of the period you take your ...


4

In double-entry bookkeeping, no transaction is ever negative. You only deal in positive numbers. We "simulate" negative numbers by calling numbers debits and credits, where one is the negative of the other. Only a balance can be negative. In this case, Income is a credit account. That means that things that increase your balance are credits and things that ...


4

I’m going to answer this because: this isn’t about accounting, this is about portfolio tracking. you are a sole proprietor. Accounting books only reflect the dollar value of inventories. Which means if you look at the balance sheet of McDonalds, you will not see how many bags of French fries are remaining at their storage facility, you will only see the ...


4

When you pay the flight, hotel, conference attendance fees of $100: DR CR Accounts receivable: Employer Name 100 Liability: Credit Card 100 When you repay the credit card debt of $100: DR CR Liability: Credit Card 100 ...


4

I've been in a very similar situation to yours in the past. Since the company is reimbursing you at a flat rate (I assume you don't need to provide documentation/receipts in order to be paid the per diem), it's not directly connected to the $90 in expenses that you mention. Unless they were taking taxes out that would need to be reimbursed, the separate ...


4

In GNUCash, enable Trading Accounts. Then you will see unrealized gains in the Balance Sheet. https://www.gnucash.org/docs/v2.6/C/gnucash-guide/currency_concepts1.html A set of books can only contain 1 currency. Foreign currency should be treated as if they are quantifiable investments. The initial value of foreign currency should be stored. When part of ...


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