Stock gains/losses cause balance sheet imbalance
Charles M. Gajan
charlesgajan@earthlink.net
05 Jan 2002 10:28:11 -0500
On Sat, 2002-01-05 at 07:27, Nikunj Bansal wrote:
> Hi everyone,
>
> I have broken my head obver this one for sometime now
> and I am not able to figure this out myself. Maybe
> someone here can help.
>
> Ok, say, I bought $1000 of stock X and few days later
> sold them at $900, taking a $100 loss, or at $1100
> taking a $100 profit. How would I show this in gnucash
> so that the Balance sheet remains balanced i.e. Assets
> = Equity + Profits + Liability?
This is double entry accounting. If you enter a gain or loss in a stock
or mutual fund account, you need to enter a corresponding entry in
another account. In this case I use (naming convention optional) an
income account named Long Term Capital Gains and Short Term Capital
Gains. I break it out into seperate accounts for US tax purposes.
I hope this helps.
>
> As of now the way my accounts are arranged, everything
> balances out but my Balance sheet is imbalanced
> exactly by the amount of money that I lost (sadly :-()
> on stock trades during the year.
>
> All help will be appreciated.
>
> Thanks
> Nikunj.
>
>
> __________________________________________________
> Do You Yahoo!?
> Send FREE video emails in Yahoo! Mail!
> http://promo.yahoo.com/videomail/
> _______________________________________________
> gnucash-user mailing list
> gnucash-user@lists.gnumatic.com
> http://www.gnumatic.com/cgi-bin/mailman/listinfo/gnucash-user