Next [was Re: Stock trades and realized gains/losses]

[Linas Vepstas]

On Sat, Jan 11, 2003 at 10:03:57AM -0600, Glen Ditchfield was heard to remark:
> 
> Shouldn't the adjusting transaction move money from a realized gain account to 
> the ultimate destination account?  I thought stock sales would work like 

yes.

> this:
> - Buy 1 share of RHAT for $5, and record it in the stock account.
> - Sell 1 share of RHAT for $9 cash.  The transaction would have splits showing

yes.

>   * one share of RHAT sold from the stock account for $5 (the purchase price)

no.  its sold for $9, not $5.  The difference $9-$5 is the realized
gain.

>   * $4 credited (debited? whichever) from a realized gain account
>   * $9 deposited in the "cash" account.

yes.

> All transactions involving a lot would use the same price. 

no. 

> The GUI should 
> support sales by having the user pick a realized gain account, and by 

yes,  when a stock account is created, there should be a place to
select the 'default realized-gain income account'

> automatically subtracting the purchase price from the sale price.

yes, that is what 'double-balancing the lot'  would do.
--linas

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pub  1024D/01045933 2001-02-01 Linas Vepstas (Labas!) <linas@linas.org>
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