Recording a stock Rights Issue

[Paul Schwartz]

There are a couple of options: sort of depends on what your "accountant" 
recommends [if you have one]. You could enter the cash as a dividend payment 
[i.e., income] or put it in as a return of principal and reduce the basis for 
the shares. I don't know what the standards are in the UK, but I usually put it 
in as a dividend.

HTH

Paul



----- Original Message ----
> From: Steve_UK <sjmart1uk at yahoo.co.uk>
> To: gnucash-user at gnucash.org
> Sent: Thu, August 19, 2010 3:25:33 PM
> Subject: Recording a stock Rights Issue
> 
> 
> Some Background:
> I have a detailed GnuCase account set-up whereby there  is a parent account
> for my portfolio, and then a sub-account for each stock  (I guess this is
> normal).  So Buys / Sells are transfers from the "Cash"  account associated
> with the portfolio to the stock account with the same  portfolio (the
> "Exchange Rate" reflecting the stock price).
> 
> Likewise,  dividends come from an "Income" type account, with a sub-account
> for each  stock.
> 
> Ok, with the above, how would I record a rights issue ?
> This  has resulted in additional shares being allocated along with a cash
> deposit  to the "cash" account.
> 
> Many thanks for any views.
> -- 
> View this  message in context:  
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