Quantcast

adjusting journal entries

classic Classic list List threaded Threaded
8 messages Options
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

adjusting journal entries

Rachel Gage
How do I post an adjusting journal entry in Gnu Cash?

Thanks.
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

Mike or Penny Novack
Rachel Gage wrote:

>How do I post an adjusting journal entry in Gnu Cash?
>
>  
>
Nothing special needed (just like any other transaction).

In traditional (precomputer) pen and ink on paper bookkeeping
transactions were first entered into the journal and then this
transaction was posted into the ledger (with the journal entry marked
"posted". Gnucash is autoposting, that error prone (miscopying or
transposing digits) process automated for you but you work in reverse.
You begin entering the transaction in any of the ledger accounts
affected and that process lets you select the other account affected (or
accounts if a split).

I believe what you mean by a "journal adjusting entry" is a transaction
where there is no cash in or out. But it is still debits to one account
(or accounts) and credits to another (or others). It's only by the
purpose (making an adjustment) that there is a difference, not in what
you have to do.

Michael
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

John R. Sowden
In reply to this post by Rachel Gage
On 06/06/2013 08:01 AM, Rachel Gage wrote:

> How do I post an adjusting journal entry in Gnu Cash?
>
> Thanks.
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>
I am learning the gc way of things, which is a little cryptic, but this
is straight forward.  Assuming you are using accrual accounting as
opposed to cash accounting.  You use the Tools>general ledger entry.  
This is actually a "general Journal".  There is no 'source account',
like writing a check.  You enter the debit and credit. So, let's say, at
the beginning of the year, you bought a huge chunk of chocolate, using
the following entry:

DR  Asset Chocolate Chunk     1,000.00
CR Cash-Checking Account                         1,000.00

During this reporting period, the current quarter, you consumed some of
the chocolate chunk.  The adjusting entry, made before creating the
quarterly balance sheet would be:

DR  Chocolate Expense                30.00
CR  Asset Chocolate Chunk                             30.00

What happened is, during the current quarter, you consumed some of the
big chocolate chunk, so the asset was reduced by the amount consumed.

You might substitute Office Supplies for Chocolate Chunk.

John


_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

mrskhris
Just my two pennies. Rachel, were you, by any chance, referring to
closing entries - those ones you have to make at the end of the year
to bring your expenses and income accounts to stage zero? If that's
the case, then you have to look at the "Tools - Close Book" menu. From
there it should be more or less obvious.

Elena Khrissanova
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

Rachel Gage
I appreciate the suggestions from everyone.  I think part of the problem is
that I don't have a clue about accounting so I don't necessarily understand
the nuances of Gnu Cash.  I need to take a little time and digest these
answers and figure out how to proceed.  Thanks all.

On Thu, Jun 6, 2013 at 10:55 PM, Elena Khrissanova <[hidden email]>wrote:

> Just my two pennies. Rachel, were you, by any chance, referring to
> closing entries - those ones you have to make at the end of the year
> to bring your expenses and income accounts to stage zero? If that's
> the case, then you have to look at the "Tools - Close Book" menu. From
> there it should be more or less obvious.
>
> Elena Khrissanova
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

John Ralls-2

On Jun 7, 2013, at 8:14 AM, Rachel Gage <[hidden email]> wrote:

> I appreciate the suggestions from everyone.  I think part of the problem is
> that I don't have a clue about accounting so I don't necessarily understand
> the nuances of Gnu Cash.  I need to take a little time and digest these
> answers and figure out how to proceed.  Thanks all.

Study http://www.gnucash.org/viewdoc.phtml?rev=2.4&lang=C&doc=guide
to get started. If that proves insufficient, try a basic accounting book or a book-keeping
course.

Regards,
John Ralls


_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

Mike or Penny Novack
In reply to this post by John R. Sowden
The reason I gave the answer that I did .........

>>
> I am learning the gc way of things, which is a little cryptic, but
> this is straight forward.  Assuming you are using accrual accounting
> as opposed to cash accounting.  You use the Tools>general ledger
> entry.  This is actually a "general Journal".  There is no 'source
> account', like writing a check.

Yes, the tool allows you to enter transactions into the journal (and
have gnucash post them to the affected ledger accounts)

But the reason I said "no different from any other transaction" is that
you could instead enter from one of the affected ledger accounts just
like with any other transaction (and gnucash creates the implied journal
entry like always).

I simply don't know what you mean by "source". The gnucash set of books
is an ordinary set of books. This is NOT "cashbook accounting" where
cash HAS to be one side of any transaction (most of them) and you use
the journal just for the few transactions where "cash" isn't one side of
the transaction. You might simply have been thinking of gnucash that way
(as a "cashbook" set of accounts) because it is autoposting* and
"cashbook" accounting used to be done in the old pen and ink on paper
days in situations where 90% of transactions affected cash and a small
set of income and expense accounts -- few enough so this part of the
ledger could fit on say 12 column accounting paper and THESE
transactions didn't need to get posted, prone to errors (most errors
were miscopying or transposing digits). Twelve columns would allow for
"cash" and five other accounts.

If you don't understand, consider how you would properly enter:

a) A purchase made by a credit card.
b) A purchase made "on account" (terms might be 30 days net, 1% per
month thereafter ---- you might be sent this invoice later but generally
would come dated as of the date of the purchase).
c) A purchase from your brother; you now owe him that amount.


> You enter the debit and credit. So, let's say, at the beginning of the
> year, you bought a huge chunk of chocolate, using the following entry:
>
> DR  Asset Chocolate Chunk     1,000.00
> CR Cash-Checking Account                         1,000.00
>
> During this reporting period, the current quarter, you consumed some
> of the chocolate chunk.  The adjusting entry, made before creating the
> quarterly balance sheet would be:
>
> DR  Chocolate Expense                30.00
> CR  Asset Chocolate Chunk                             30.00
>
I other words, to enter this transaction I would open EITHER Chocolate
Expense or Asset Chocolate Chunk and the only thing I would need to take
care about is that gnucash tends to use labels other than debit and
credit so you should be aware on what side of the ledger these ledger
accounts live (whether they normally have a debit or a credit balance).

Michael
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|  
Report Content as Inappropriate

Re: adjusting journal entries

Ian Konen
On Fri, Jun 7, 2013 at 12:11 PM, Mike or Penny Novack <
[hidden email]> wrote:

>
>>
>>  I other words, to enter this transaction I would open EITHER Chocolate
> Expense or Asset Chocolate Chunk and the only thing I would need to take
> care about is that gnucash tends to use labels other than debit and credit
> so you should be aware on what side of the ledger these ledger accounts
> live (whether they normally have a debit or a credit balance).
>
>
Sorry to go a little off topic from the original thread, but thought I
would point out that the use of the labels "debit" and "credit" is a
preference under Accounts -> Use Formal Accounting Labels.  I think it's
off by default on a new installation of GnuCash as a nod to non-accountants
(and perhaps Quicken and MM converts) trying to get up and running with a
minimum of confusion, but if you'd rather see the proper terms, the option
is there.



> Michael
> ______________________________**_________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/**mailman/listinfo/gnucash-user<https://lists.gnucash.org/mailman/listinfo/gnucash-user>
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>



--
Ian Konen
[hidden email]
www.linkedin.com/in/iankonen
978-821-6498
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Loading...