balance sheet problem due to dividend reinvestment

TRunner ttop123 at comcast.net
Wed Jul 12 00:33:08 EDT 2006


(nobody responded the first time, sending again... thanks in advance
for helping, this is a showstopper for me)

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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