Fund sold skews balance sheet by amount of previous dividend reinvestment

TRunner ttop123 at comcast.net
Tue Jul 11 02:07:26 EDT 2006


I purchased a mutual fund and then received an automatically re- 
invested dividend.  As suggested in the guide, I added this  
reinvestment directly to the fund account in the form of shares  
purchased, with the transfer account being Income:Dividend.  No split  
in this transaction, just shares / price / buy for the total amount,  
from Income:Dividend.

e.g.
Buy Income:Dividend:Non-taxable  Shares: 7.757  Price: 22.1606  Buy  
171.90


Then when I sell the fund, I also follow then instructions in the  
guide to balance the transaction correctly for the total number of  
shares I have and in this case a capital loss.  While this sell  
transaction balances fine and it zeroes out the account balance and  
shares, my balance sheet is now off by the exact amount of the  
dividend reinvestment.  How do I resolve this?  Do I need to account  
for the initial dividend reinvestment differently, and if so, how?





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