- Assets are money that you have, and Liabilities are money that you owe. “Liabilities” is just a more inclusive name for Debts.
- A positive cash flow means you are spending more than you make, since income is always a negative figure. To see your current cash flow, use this command:
- https://www.ledger-cli.org/3.0/doc/ledger3.html#Tracking-reimbursable-expenses (Same company example)
- But what is equity? You may have heard of equity when people talked about house mortgages, as “the part of the house that you own”. Basically, equity is like the value of something. If you own a car worth $5000, then you have $5000 in equity in that car. In order to turn that car (a commodity) into a cash flow, or a credit to your bank account, you will have to debit the equity by selling it. […] Because that is what you were worth (what you debited from yourself in order to start the ledger) before the money started moving around. If the total positive value of your assets is greater than the absolute value of your starting equity, it means you are making money. Clear as mud? Keep thinking about it. Until you figure it out, put not Equity at the end of your balance command, to remove the confusing figure from the total.
- 3.7 Dealing with Petty Cash
- Virtual
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