How to handle sale of partial lots of stock?
Derek Atkins
warlord at MIT.EDU
Thu Mar 16 09:58:04 EST 2006
Okay, looking at the balance sheet in 1.9/SVN, when I reset to "Most Recent"
in the Price Source, it displays the 100 shares -> $2000, which is correct.
But yes, the Unrealized Gains are incorrect at $333.33.
So... Could you file a bug report in bugzilla and attach this
data file to the bug report?
-derek
Quoting John Schoffstall <john.schoffstall at pobox.com>:
> Derek Atkins wrote:
>> Could you send me the test data file you're using? Feel free
>> to send it off-list and just attach it to the message.
>
> Attached.
>
> Thanks for helping with this!
>
> == John
>
>> -derek
>>
>> Quoting John Schoffstall <john.schoffstall at pobox.com>:
>>
>>> Derek Atkins wrote:
>>>
>>>> Well, it's also possible that the balance sheet is screwed up..
>>>> I'm assuming you're running 1.8 and not 1.9?
>>>
>>>
>>> 1.8.10, the version being distributed with Debian etch.
>>>
>>> == John
>>>
>>>> -derek
>>>>
>>>> John Schoffstall <john.schoffstall at pobox.com> writes:
>>>>
>>>>
>>>>> Derek Atkins wrote:
>>>>>
>>>>>> You're using Weighted Balance for the stock price. Don't do that.
>>>>>> You want to use the "most recent pricedb entry" and make sure you
>>>>>> have a pricedb entry for the $20/share
>>>>>
>>>>>
>>>>> Okay, I did that. Now the balance sheet looks like this:
>>>>>
>>>>> Assets
>>>>> Assets $0.00
>>>>> Investments: $3995.00
>>>>> Assets $3995.00
>>>>>
>>>>> Liabilities
>>>>> Liabilities $0.00
>>>>> Unrealized Gains(Losses) $333.33
>>>>>
>>>>> Equity
>>>>> Equity $0.00
>>>>> Opening Balances: $2000.00
>>>>> Retained earnings: $0.00
>>>>> Net Profit: $995.00
>>>>> Total Equity: $2995.00
>>>>>
>>>>> Liabilities & Equity: $3328.33
>>>>>
>>>>> But Unrealized Gains should be $1000, not $333.33. Price db
>>>>> entries are $10 for 3/14 and $20 for 3/15-present.
>>>>>
>>>>> == John
>>>>>
>>>>>
>>>>>> -derek
>>>>>> Quoting John Schoffstall <john.schoffstall at pobox.com>:
>>>>>>
>>>>>>
>>>>>>> Derek Atkins wrote:
>>>>>>>
>>>>>>>
>>>>>>>> Um, it should work just fine if you put in the correct
>>>>>>>> gain/loss splits.
>>>>>>>> Can you show an example of where it's failing, please?
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Create a GnuCash file with Assets, Expense, Income, and Equity
>>>>>>> accounts. Create a stock account under the Brokerage account,
>>>>>>> "Digital Datawack" (DWAK). We'll use these accounts:
>>>>>>>
>>>>>>> Assets:Investments:Brokerage
>>>>>>> Assets:Investments:Brokerage:DWAK
>>>>>>> Expense:Commissions
>>>>>>> Income:Capital Gains
>>>>>>> Equity:Opening Balances
>>>>>>>
>>>>>>> Enter a transaction for 200 shares of Digital Datawack at $10 a
>>>>>>> share as an opening balance:
>>>>>>>
>>>>>>> Date Action Account Shares Price
>>>>>>> Debit Credit
>>>>>>> 03/14/2006 Buy Assets:Investments:Brokerage:DWAK 200 10 2000
>>>>>>> Equity:Opening Balances
>>>>>>> 2000
>>>>>>>
>>>>>>> Our balance sheet looks like this:
>>>>>>>
>>>>>>> Assets
>>>>>>> Assets $0.00
>>>>>>> Investments: $2000.00 Assets $2000.00
>>>>>>> Liabilities
>>>>>>> Liabilities $0.00
>>>>>>> Unrealized Gains(Losses) $0.00
>>>>>>>
>>>>>>> Equity
>>>>>>> Equity $0.00 Opening Balances: $2000.00
>>>>>>> Retained earnings: $0.00
>>>>>>> Net Profit: $0.00
>>>>>>> Total Equity: $2000.00
>>>>>>>
>>>>>>> Liabilities & Equity: $2000.00
>>>>>>>
>>>>>>>
>>>>>>> Digital Datawack doubles in a day! We'll lock in profits and sell
>>>>>>> half our shares:
>>>>>>>
>>>>>>> Date Action Account Shares Price
>>>>>>> Debit Credit
>>>>>>> 03/15/2006 Sell Assets:Investments:Brokerage 1995
>>>>>>> Expenses:Commissions
>>>>>>> 5 Assets:Investments:Brokerage:DWAK
>>>>>>> 1000
>>>>>>> Assets:Investments:Brokerage:DWAK -100 20
>>>>>>> 2000
>>>>>>> Income:Capital Gains
>>>>>>> 1000
>>>>>>>
>>>>>>> But now our balance sheet looks like this:
>>>>>>>
>>>>>>> Assets
>>>>>>> Assets $0.00
>>>>>>> Investments: $3661.67 Assets $3661.67
>>>>>>> Liabilities
>>>>>>> Liabilities $0.00
>>>>>>> Unrealized Gains(Losses) $0.00
>>>>>>>
>>>>>>> Equity
>>>>>>> Equity $0.00 Opening Balances: $2000.00
>>>>>>> Retained earnings: $0.00
>>>>>>> Net Profit: $995.00
>>>>>>> Total Equity: $2995.00
>>>>>>>
>>>>>>> Liabilities & Equity: $2995.00
>>>>>>>
>>>>>>> Drilling down into the balance sheet a little, it seems that
>>>>>>> everything is correct, except that our remaining shares of DWAK are
>>>>>>> being assigned the value of $1666.67. Huh?
>>>>>>>
>>>>>>> So: what's going on here? What am I missing?
>>>>>>>
>>>>>>> == John
>>>>>>>
>>>>>>>
>>>>>>>> -derek
>>>>>>>>
>>>>>>>> Quoting John Schoffstall <john.schoffstall at pobox.com>:
>>>>>>>>
>>>>>>>>
>>>>>>>>> [ack, replied to Derek instead of to the list, sorry]
>>>>>>>>>
>>>>>>>>> Thanks for the fast reply!
>>>>>>>>>
>>>>>>>>> Yes, I read that, and set up the splits as described. It works if
>>>>>>>>> I sell exactly the number of shares that I own. But if
>>>>>>>>> -NUM_SHARES is less than my total owned shares, my balance sheet
>>>>>>>>> will be unbalanced as a result. It remains unbalanced until I
>>>>>>>>> sell the rest of the shares of that stock account.
>>>>>>>>>
>>>>>>>>> == John
>>>>>>>>>
>>>>>>>>>
>>>>>>>>> Derek Atkins wrote:
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>> You should read the concepts guide.
>>>>>>>>>>
>>>>>>>>>> http://www.gnucash.org/docs/v1.8/C/gnucash-guide/invest_sell1.html
>>>>>>>>>>
>>>>>>>>>> -derek
>>>>>>>>>>
>>>>>>>>>> Quoting John Schoffstall <john.schoffstall at pobox.com>:
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>>> Greetings! Running 1.8.10 on Debian etch. New GnuCash user, new
>>>>>>>>>>> list user, new Linux user.
>>>>>>>>>>>
>>>>>>>>>>> I've been climbing the GnuCash learning curve for the past
>>>>>>>>>>> week, been happy with the software, and making good progress
>>>>>>>>>>> until now. I've hit a snag I can't get past, though.
>>>>>>>>>>>
>>>>>>>>>>> How do you sell a partial lot of stock -- e.g., selling only
>>>>>>>>>>> 100 of 200 owned shares -- without unbalancing your balance
>>>>>>>>>>> sheet? I've tried creating two lots, each of 100 shares and
>>>>>>>>>>> only selling one, but that still whacks the balance sheet.
>>>>>>>>>>>
>>>>>>>>>>> The examples in the docs all seem to show only the purchase and
>>>>>>>>>>> sale of equivalent amounts. I've googled the net and the
>>>>>>>>>>> mailing list archives, but can't find an answer I can
>>>>>>>>>>> understand.
>>>>>>>>>>>
>>>>>>>>>>> This is a common situation; there must be an answer. Can
>>>>>>>>>>> anyone help?
>>>>>>>>>>>
>>>>>>>>>>> == John
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>
>>>>>
>>>>
>>>
>>>
>>
>>
>>
>
>
--
Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
Member, MIT Student Information Processing Board (SIPB)
URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH
warlord at MIT.EDU PGP key available
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