Entering stock transactions

Fred Bone 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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