# Question on how to record share losses

TrackerChamp TrackerChamp@gmx.net
Wed, 1 Aug 2001 15:53:04 +0200

```Hello everyone,

I have a question on how to record losses caused by lesser share value.=20
(Please excuse, I am not a native English speaker, so maybe I confuse som=
e=20
financial terms...)

Consider the following example:

1) In May you buy 100 shares of e.g. "Linux Inc." for 10\$ each. So you=20
transfer 1000\$ from your bank account to your  "Linux Inc." stock account=
=2E

2) In June, you realize (by using the price editor), that the share went =
up=20
to 11\$ a piece. So you have a (unrealized) gain of 100\$ because your shar=
es=20
are now worth 1100\$ The price editor (and Gnucash) shows you this in the=20
balance for your shares. They are now worth \$1100. BUT there is no bookin=
g=20
that actually says, that you had an (unrealized) gain of \$100. If you ope=
n=20
the wins/losses report, there should somewhere be a win of \$100. This cou=
ld=20
be an income account called "share wins".

3) in July, the share go down to \$5. Now, the price editor show the new p=
rice=20
correctly, but where is the concerning loss booking. There should be one,=
as=20
you now have had \$600 of losses (100*11\$-100*5\$). So, when you actually s=
ell=20
your stocks, you have an actual loss of \$500 (1000\$+100\$-\$600).=20

In the online help, there is an example with the painting. This is more o=
r=20
less the same. But I can't see how to book these transactions in an=20
stock-type account. It seems to me, that you just can buy or sell shares =
and=20
there is no place to keep the amount of shares and nevertheless book a=20
win/loss.

I hope, I got everything right. I am not an expert in double-entry bookin=
g.=20
But my dad - who used to be an accountant - told me that it should be thi=
s=20
way. Maybe someone can help me with this question.

Greetings,

=09Marc

--=20
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TrackerChamp=09=09
(TrackerChamp@gmx.net)=09

PGP/GPG fingerprint:       8674 6B05 3844 DB4A 65AB  A40B 23A1 A148 37F6 =
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