GNUCash: How to count up equity?

Question

I'm new to getting my finances in order, and I've decided to use GNUCash to track my spending and general financial health. I'm reading the manual and trying to take control! My trouble and confusion stems from the fact that I don't have a current clear picture of my financial state *right now*. I understand the concept of an `Equity:Opening Balances` account, and I've used this to set the opening balance of my new checking account. However, I obviously have more stuff that I may need to count as equity (things that I don't know that I might want to include later...). I just can't find any clear guides for what to call it when I do decide to enter it as an asset (probably later, as I can't count it all up at once). I also can't decide what equity account to name as the source for these new asset entries. They aren't `Opening Balances`, after all! For example: 1. I'll soon get a refund for a parking pass. This isn't income as I already earned the money I spent on the pass, but it also isn't an opening balance for an account. When I get the cash, what equity account should be credited? 2. I might sell some minor property, like a TV or a computer or something. It's not income since I already bought the TV with income. How do I deposit the cash in an asset account and label it with a source account in equity? 3. What if I find $100 in my jacket that I didn't know I had? Again, not income or an opening balance. What equity account should be credited? All of this is confusing because there is so much property in my life that is unaccounted for.

Answer 1

Ok you start with opening balances listing all the assets you want to list it checking acct cash $ 500, TV 400, dog house 200, tax refund receivable 100, mattress cash 100. The offsetting credit is your credit to equity or another way to look at that credit is , it's your net worth. I assume you don't have any liabilities. If you do you subtract them from your total assets to arrive at your net worth it equity. Then when you earn income you debit cash and credit income. So goes the cycle. At the end of year if you have a positive net income after all expenses that becomes an addition ( credit) to retained earnings on the balance sheet. Then the next year's income statement starts over from zero in all accounts.