Tracking realized gains/losses with mutual funds

[Errol Siegel]

> Message: 5
> Subject: Re: Tracking realized gains/losses with
> mutual funds
> From: Matthew Vanecek <mevanecek@yahoo.com>
> To: errol@bitterkitten.com
> Cc: gnucash-user@lists.gnucash.org
> Organization: 
> Date: 08 Dec 2002 11:34:03 -0600
> 
> 
> --=-k1z5gy0B8Xl04rnpGNzS
> Content-Type: text/plain
> Content-Transfer-Encoding: quoted-printable
> 
> On Sun, 2002-12-08 at 11:06, Errol Siegel wrote:
> > I have a question about tracking mutual funds.  I
> have
> > several mutual funds set up in gnucash.  I am able
> to
> > track the current value and unrealized gain/loss
> just
> > fine.  However, I traded shares of one fund for
> shares
> > of another fund and in doing so realized a loss. 
> The
> > Balance Sheet Report does not seem to have a way
> of
> > showing this loss and instead shows an imbalance
> (in
> > the amount of the loss).  I am using gnucash
> 1.6.8.=20
> > Is this a known issue with this version?  Is there
> > something I need to do differently to make this
> work?
> >=20
> 
> Common accounting practice suggests creating
> accounts to hold realized
> losses/gains.  I think it would be an Income
> account.  You should move
> the amount of the loss/gain to the realized account.
> 
> You may want to invest in a decent accounting book
> that covers such
> issues.  Once you understand the principles,
> creating the accounts is
> trivial.
> 
> HTH a little,
> --=20
> Matthew Vanecek

Thanks for the response.  I believe I have a full
understanding of the accounting principles.  My
question is purely technical: how do I do this with
gnucash?  In the example I listed in my previous
e-mail, I realized a loss, which would go into a 'loss
expense' account (debit).  BUT - what account would be
credited?  I don't see how it could be the mutual fund
account since it tracks a balance of shares, not
dollars.

Errol

__________________________________________________
Do you Yahoo!?
Yahoo! Mail Plus - Powerful. Affordable. Sign up now.
http://mailplus.yahoo.com