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Entities should be hierarchical (like accounts) and transactions should have to balance for each entity mentioned in the transaction.
Should probably show entities like this:
2009-02-27 'Owner' lent $100 to 'FamilyBusines'. Business owes that money to 'Owner'
Owner/Assets:Cash -$100
Owner/Assets:Receivable:FamilyBusiness $100
FamilyBusiness/Assets:Cash $100
FamilyBusiness/Liabilities:Owner$100
You could then drill down to entities to work out what their p/l or balance sheet looked like. Several entities could keep assets in the same account, or more likely you might have sub-entities for different activities within an entity, sharing an account, but you could always break the balance in an account up between the different entities using it.
The text was updated successfully, but these errors were encountered:
Entities should be hierarchical (like accounts) and transactions should have to balance for each entity mentioned in the transaction.
Should probably show entities like this:
2009-02-27 'Owner' lent $100 to 'FamilyBusines'. Business owes that money to 'Owner'
Owner/Assets:Cash -$100
Owner/Assets:Receivable:FamilyBusiness $100
FamilyBusiness/Assets:Cash $100
FamilyBusiness/Liabilities:Owner$100
You could then drill down to entities to work out what their p/l or balance sheet looked like. Several entities could keep assets in the same account, or more likely you might have sub-entities for different activities within an entity, sharing an account, but you could always break the balance in an account up between the different entities using it.
The text was updated successfully, but these errors were encountered: