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- <string>The most confusing transaction in any ledger will be your equity account---
-because starting balances can't come out of nowhere.
-
-When you first start your ledger, you will likely already have money
-in some of your accounts. Let's say there's $100 in your checking
-account; then add a transaction to your ledger to reflect this amount.
-Where will money come from? The answer: your equity.
-
-@smallexample
-10/2 Opening Balance
- Assets:Checking $100.00
- Equity:Opening Balances
-@end smallexample
-
-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.
-
-When you start a ledger, you are probably already worth something.
-Your net worth is your current equity. By transferring the money in
-the ledger from your equity to your bank accounts, you are crediting
-the ledger account based on your prior equity. That is why, when you
-look at the balance report, you will see a large negative number for
-Equity that never changes: 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
-@samp{-Equity} at the end of your balance command, to remove the
-confusing figure from the total.</string>
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