Entering stock transactions
Fred.Bone at dial.pipex.com
Mon Sep 8 04:20:01 EDT 2008
I'm struggling to work out how to enter some complex stock transactions.
Can anyone help? Note that I'm not looking for "accountancy" or "tax"
advice; I'm trying to work out how to satisfy the balancing rules (and so
prevent spurious trial-balance errors).
This example is probably as good as any:
I bought 225 UU for 1473.59 plus 19.87 total dealing costs. So far so
Subsequently there was a capital reorganisation.
17 new "A" shares for every 22 old, plus a 1-for-1 issue of "B" shares,
redeemable at 1.70 each.
So I received
173 (= 225*17/22) new "A" shares, plus
6.13 in cash for the odd 19/22 of a share, plus
382.50 (= 225*1.70) in cash on redeeming the "B" shares.
(There are no dealing costs).
I initially entered this transaction using the "Stock Split" Wizard, and
it shows as a "Split" of -52 shares, with two "Sell" splits, one of
382.50 and the other of 6.13, and one "Buy" split of 388.63 Capital
Is this "the GnuCash way" to do it? Or should I work out the implied
value of a share (given that 19/22 was worth 6.13, that's 7.098 per
share) and treat it as two transactions: a sale of the original 225 (for
225*7.098 = 1597.05) and a purchase of 173 (for 1597.05 - 388.63 =
1208.42, implying a price of 6.9851)? In the latter case would it be
better to close off the register and start another with the "second
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