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KMYMONEY-Equity & Account View

norberthd
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KMYMONEY-Equity & Account View

Wed Jul 10, 2013 2:10 pm
I use version 4.6.3, window based.
I opened checking account with opening balance $ 2000.00/-
Added Salary income $ 500.00/-to my checking account.
Now Account View shows,
Checking Account: 2500.00
Income: 500.00
Equity: 2000.00

i.e. Equity remains unchanged and shows opening balance.

I would appreciate feedback.

Regards,
User avatar Hei Ku
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Re: KMYMONEY-Equity & Account View

Wed Jul 10, 2013 2:25 pm
What feedback are you expecting?

IMHO, you are expecting equity to be net worth, and it's not.

Equity will gather all those opening balances of accounts. (One exception is advanced mode, where you can enter transactions manually into equity accounts, but it's not this case)

If you want to know your total amount of wealth, you should look at "Net worth".


Hei Ku, proud to be a member of the KMyMoney Development Team since January-2008
norberthd
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Re: KMYMONEY-Equity & Account View

Wed Jul 10, 2013 3:11 pm
Hei Ku wrote:What feedback are you expecting?

IMHO, you are expecting equity to be net worth, and it's not.

Equity will gather all those opening balances of accounts. (One exception is advanced mode, where you can enter transactions manually into equity accounts, but it's not this case)

If you want to know your total amount of wealth, you should look at "Net worth".


Thanks. That is what I assumed. i.e. Equity shows opening balance only and not the standard accounting equation
Assets - Liabilities = Equity + (Income - Expenses)
User avatar ipwizard
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Well, it shows the equity part of the standard account equation. In your example we have:
  • Asset = 2500
  • Liabilities = 0
  • Equity = 2000
  • Income = 500
  • Expense = 0
So 2500 - 0 = 2000 + (500 - 0) works for me.


ipwizard, proud to be a member of the KMyMoney forum since its beginning. :-D
openSuSE 11.1 32 bit, KDE 4.3.5 -- openSuSE 12.2 64bit, KDE 4.11.5 -- kubuntu 8.10 32bit KDE 4.3.2 via LTS

 
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