Stocks and Balancing Accounts
daniel.carrera at zmsl.com
Sun Jun 15 13:49:29 EDT 2008
Another thing about this page:
I have no idea what those tables mean. I don't understand what they are
trying to say.
Charles Day wrote:
> On Sun, Jun 15, 2008 at 4:05 AM, Daniel Carrera <daniel.carrera at zmsl.com
> <mailto:daniel.carrera at zmsl.com>> wrote:
> I want to buy stocks, but I fear that GnuCash won't handle stock prices
> properly. Suppose I own stock XYZ valued at $1050 but GnuCash only has a
> record of me putting in $1000. The other $50 are stock appreciation. In
> this scenario, the accounts won't balance.
> If you've only recorded your purchase at $1000 per share, then your
> books should still be in balance.
> If you then add a price of $1050 to the price editor, to reflect the
> current price, then reporting ought to show a total value of $1050 per
> share with $50 per share being an "unrealized gain".
> In the ideal world, GnuCash should realize that changes in stock prices
> are capital gains or loses, that that's a type of income, and that the
> accounts do balance. But GnuCash won't do that.
> Doesn't the advanced portfolio report show unrealized gains? (I'm not sure.)
> How do you deal with this problem?
> I encountered a similar problem earlier with currencies. The way I dealt
> with that was to create a bunch of "Currency" accounts. So, for
> instance, if I wanted to exchange $1500 USD for 1000 EUR I would do
> 1. Transfer 1500 USD from "Banks > My US Bank" to "Currency > USD".
> 2. Transfer 1000 EUR from "Currency > EUR" to "Banks > My EU Bank".
> I don't love this method, but it works well enough.
> Stocks and currencies are basically identical as far as buying and
> selling are concerned. To keep the books in balance, you just have to
> make sure that when you sell any quantity of securities or foreign
> currency that you account for capital gains or losses in your "home"
> currency (USD in your example). There is an explanation of how to do
> this for stocks in the documentation (which applies equally to currencies).
> But what do I do with stocks? Do I have to make a separate "Currency"
> account for each and every stock I want to buy? Is that the solution?
> gnucash-user mailing list
> gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org>
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
More information about the gnucash-user