Once again, help wanted on Treasury note transaction accounting please

[Paul Schwartz]

I think you are confusing the face value of the Note/Bill with the amount you paid.

I think the entries when you purchase should be

Cash/checking/some asset account  Credit amount paid
Treasury Direct asset account  Debit amount paid

When it comes due you receive $10K [for example]. the difference between what you paid and what you receive goes to interest income if you are dealing with Treasury Direct. If it was a market purchase the difference might go to capital gain income. It's an accountant question and therefore doesn't have a definite answer. :-))

HTH

Paul

--- On Fri, 3/12/10, Fred Frigerio <frigerio at bellsouth.net> wrote:

> From: Fred Frigerio <frigerio at bellsouth.net>
> Subject: Re: Once again, help wanted on Treasury note transaction accounting  please
> To: "John K. Taber" <jktaber at charter.net>
> Cc: gnucash-user at gnucash.org
> Date: Friday, March 12, 2010, 1:33 PM
> Instead of letting the imbalance
> account balance the transaction, use the
> bank account which is probably an Asset account. Then the
> transaction
> balances.
> 
> Fred Frigerio
> 
> 
> 
> On Fri, Mar 12, 2010 at 3:04 PM, John K. Taber <jktaber at charter.net>
> wrote:
> 
> > Here is the situation.
> >
> > My 2 year US treasury note ABC matures in my Treasury
> Direct account.
> > Before
> > the principal gets to my bank I reinvest the funds in
> 2 year treasury note
> > ABD. Let's say the principal is 10,000 USD. There is a
> slight difference in
> > price for ABD so that a small amount is returned to my
> bank.
> >
> > ABC principal matures       
>    10,000.00
> > ABD purchase           
>         -9,997.20
> > My Bank Account         
>           2.80
> >
> > I have my accounts structured as
> > Treasury Direct parent
> >   ABC child
> >   ABD child
> >
> > In Quicken I treat ABD matures as a Sell, ABD as a
> Buy, and the 2.80 as an
> > Xout (transfer funds out).
> >
> > How should these transactions be treated in GC? I'm
> asking for step-by-step
> > directions, please.
> >
> > For the time being, I use the Imbalance account for
> intermediate steps. The
> > trouble seems to be that my parent account needs a
> cash subaccount to
> > receive and disburse sums from sales and buys. But
> there really isn't a
> > cash
> > account.
> >
> >
> >
> >
> >
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