[moneydance] moneydance-info Digest, Vol 70, Issue 1

[Satish Desai]

Hi Dave

Many thanks for your helpful suggestion.

If I Debit an asset account i.e my bank account with the capital sum I
receive and Credit a dummy asset account this will have no effect on my
Equity (Net Worth account).

Assets less Liabilities = Equity (Income Less Expenses).

The only way is to create a dummy asset account with an initial balance
equal to the capital sum I receive and the dummy asset account will then
have a zero balance, but the initial balance will have increased my Equity
balance. I have to do this every time I receive a capital sum.

If I want to record say a contigent Liability for an event, the only way is
to create a Liabilty account with an initial balance each time.

I do not want to treat a capital sum received or a liability
transaction incorrectly as an income\expense category.

Regards

Satish




On Sun, May 3, 2009 at 5:00 PM, <moneydance-info-request at moneydance.com>wrote:

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> Today's Topics:
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>   1. Capital sum Receipts (Satish Desai)
>   2. Re: Capital sum Receipts (David Carlson)
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> ----------------------------------------------------------------------
>
> Message: 1
> Date: Sun, 3 May 2009 08:35:31 +0100
> From: Satish Desai <satish.desai43 at gmail.com>
> Subject: [moneydance] Capital sum Receipts
> To: moneydance-info at moneydance.com
> Message-ID:
>        <981014d40905030035x23182007wccb52145b36e9474 at mail.gmail.com>
> Content-Type: text/plain; charset=ISO-8859-1
>
> If I receive a capital sum, I debit my Bank account ( Increase bank balance
> ) and since this is not income, I want to credit Equity account ( Increase
> Net Worth balance ). How do I deal with such transactions?
>
> Same problem arises when dealing with a Liability account when the
> transaction does not affect Income\Expense account.
>
> Moneydance deals with Net Worth as a residual balance and does not allow
> direct transaction entry to Equity\Net Worth account.
>
> It would also be useful to have a General\Nominal ledger to carry out
> Journal entries as an option, at least for advanced users.
> This would enable flexibilty.
>
> Satish
>
>
> ------------------------------
>
> Message: 2
> Date: Sun, 03 May 2009 03:56:42 -0500
> From: David Carlson <carlson.dl at sbcglobal.net>
> Subject: Re: [moneydance] Capital sum Receipts
> To: General discussion related to Moneydance
>        <moneydance-info at moneydance.com>
> Message-ID: <49FD5C4A.1080506 at sbcglobal.net>
> Content-Type: text/plain; charset="iso-8859-1"
>
> Satish Desai wrote:
> > If I receive a capital sum, I debit my Bank account ( Increase bank
> balance
> > ) and since this is not income, I want to credit Equity account (
> Increase
> > Net Worth balance ). How do I deal with such transactions?
> >
> > Same problem arises when dealing with a Liability account when the
> > transaction does not affect Income\Expense account.
> >
> > Moneydance deals with Net Worth as a residual balance and does not allow
> > direct transaction entry to Equity\Net Worth account.
> >
> > It would also be useful to have a General\Nominal ledger to carry out
> > Journal entries as an option, at least for advanced users.
> > This would enable flexibilty.
> >
> > Satish
> > _______________________________________________
> > moneydance-info mailing list
> > moneydance-info at moneydance.com
> > http://moneydance.com/mailman/listinfo/moneydance-info
> >
> >
> Satish,
>
> Moneydance allows selection of asset and liability accounts in the
> category box of the transaction record, effectively creating a transfer,
> which I think is what you are asking for.  In the US, at least, net
> worth is always the sum of all asset accounts minus all liability
> accounts.  It is not an individual account.  If you sell an asset and
> receive cash, your net worth remains the same.  It does not increase
> unless you have income(a category).
> You can always create an asset account named Net Worth, if you wish.
> Also, there are no restrictions that I am aware of to creating transfers
> between accounts or categories other than category to category transfers
> must either be initiated in a secondary window or by using Tools-Edit
> Categories to open a category register in the main window. That is a
> minor inconvenience to do something that would normally only happen in a
> General Ledger entry anyway.  I use the word Journal in the check number
> box for those cases.  Moneydance allows a lot of user creativity.
>
> Regards,
>
> Dave
>
> ------------------------------
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> End of moneydance-info Digest, Vol 70, Issue 1
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