[GNC] "Stock" Liabilities do not show up under liabilities in Balance Sheet report

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[GNC] "Stock" Liabilities do not show up under liabilities in Balance Sheet report

GnuCash - User mailing list
Running 3.7 on windows.  I have a situation where external orgs gives me their "stock" (not really stock, not really a currency either) and I record the transaction where one split is their stock account under liabilities, and the other split is my "asset" stock account.  To get this to work correctly I must record the transaction with my asset stock with a positive number in the "Tot Shares" column, and their split for their liability account gets a negative number.  Things then balance out perfectly.

So when I do a Balance Sheet report, it makes all their pieces show under "Assets", where then my Total Assets is really a partial figure in the aggregated "Total Liabilities & Equity" section at the bottom.

Is this a bug?
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Re: [GNC] "Stock" Liabilities do not show up under liabilities in Balance Sheet report

David Cousens
The situation you are describing is not clear. By stock do you mean shares
which are issued to you but which you have not purchased, perhaps as part of
a stock option?

It is not clear why you would record this with splits to both Assets and
Lliabilities. You mention "their liability account". Their liability account
should not appear in your books , only liabilities, that is obligations you
have to pay someone, that you have incurred. One would normally record any
acquistion of stock as an asset against equity, either the temporary income
and expense accounts of equity or a permanent equity account  or as a
transfer from another asset account. You would normally only incur a
liability if you borrowed the money to purchase the stock for example, but
you borrow it not the asset you purchase with it.

The other case could be if the stock was "unpaid" shares for example where
you receive an issue, but may be called upon to pay for them at a future
date. Then it may be appropriate to record that future possible demand for
payment as a liability. In this case the asset value is neutral in your
accounts (apart from capital gains and dividends) and it should be included
in both the totals for assets and liabilities.  You may need to check which
accounts are selected for inclusion in the Balance sheet report and which
are selected to be displayed explicitly in the report in the Edit->Report
Options.

You may have to describe the situation in a bit more detail but this may
really an accounting question and perhaps you should seek professional
advice in your jurisdiction on how to record the particular situation.

David Cousens



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David Cousens
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