mutual fund purchase doesn't reduce cash balance

[Jason Mclaren]

[apologies if this is a repeat -- I cancelled my first posting]

Hi,

I just wanted to say, gnucash is great -- thanks for this useful piece
of software.  I've been using it happily since version 1.6.6.

Anyways, since upgrading to version 1.8.7, I've had a bit of a problem. 
I was hoping someone might be able to help me figure out what I'm doing
wrong.  I've read the fine manuals and scanned the mailing list archives
to no avail.

Here's my problem:  when I transfer money from a "bank" account to a
"mutual fund" account, the mutual fund balance increases but the bank
balance remains unchanged.  It used to work the way I expected in 1.6.6,
but it no longer does in 1.8.7.

Now here are the details.  My gnucash accounts contain the following
account hierarchy:

Broker (Account Type=Asset, Commodity=CAD)
  |-- Cash (Account Type=Bank, Commodity=CAD)
  |-- FOO965 (Account Type=Mutual Fund, Commodity=FOO965)

The CAD commodity has Type=CURRENCY (it's the Canadian dollar).  The
FOO965 commodity was created by me and has Type=FUND (it's a mutual
fund).

The Cash account is supposed to represent cash I have sitting around in
my brokerage account, and FOO965 represents shares of a mutual fund held
in the brokerage account.

Suppose I have C$10 in the Cash account, and 10 shares in the FOO965
account. Then I buy C$10 worth of shares (at C$2 each) of FOO965, and
represent this in gnucash by transferring C$10 from Cash to FOO965.

This is how the transaction appears in the FOO965 account in split form
(the column headings are from the non-split format for (hopeful)
clarity):

Description Transfer                Shares Price Buy Sell Balance
Buy         <blank>                 5            5        15
Buy         Assets:Broker:FOO965    5      2     10
<blank>     Assets:Broker:Cash                       10
<blank>     <blank>                        1

This is how it appears in the Cash account in split form:

Description Transfer                Shares Price Buy Sell Balance
Buy         <blank>                                       10
Buy         Assets:Broker:FOO965
<blank>     Assets:Broker:Cash
<blank>     <blank>

So the F00965 balance is increased by 5 shares, but the Cash balance is
not decreased by 10 dollars as I would expect.

Then I have manually created a corresponding entry in the price editor
for FOO965, but that only seems to affect the Total column in the
accounts screen.

I can't figure out what I'm doing wrong.  Is there some additional
currency conversion I need to do?  Are the accounts denominated in the
correct commodities?  Any help would be greatly appreciated.

--jason