[moneydance] Help !! Please tell me I'm crazy !! or dumb or..

[Katahdin]

On 3/3/08, Fuzzy Fox <fox at foxtaur.com> wrote:
>
> Katahdin <MoneyDance at intermod.net> wrote:
> >
> > Assets - Liability =  X
> > $1000  - (-1000) =  $2000  Yeaaa....  ;=}
>
>
> Other money management programs do it differently.  In Moneydance, all
> accounts are the same basic type, and you do not ever subtract them to
> come up with totals, you always add them.
>
> So, if you owe someone $1000, you don't create a +$1000 balance in a
> Liability count to reflect that fact.  Instead, you create a -$1000
> negative balance in the Liability account, to demonstrate that you owe
> money.  This is true for Credit Card accounts and Loan accounts as well.
>
> So you should add your Assets (positive balance) to your Liabilities
> (negative balance) to come up with your net worth (hopefully positive,
> heh).



{sigh} - Guess someone needs to adjust this:
From: moneydance.com/trac/wiki/Understanding_Moneydance_Accounts

First, a simple lesson in accounting. Moneydance uses the double entry
method of accounting. This means that there is a link between accounts, so
when money goes somewhere, one account should increase and another should
decrease. For example, if you purchase $1000 in stock, your investment
account should increase in value by $1000 and another account should
decrease by the same amount to pay for it.

-----
Thanks for responding!!  ;=}


--
>   Fuzzy Fox <fox at foxtaur.com>
>   "Why a man would want a wife is a big mystery to some people.
>    Why a man would want two wives is a bigamystery."
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