Investments

[jomali]

On Tue, Nov 23, 2010 at 3:11 AM, Dennis Powless <claven123 at gmail.com> wrote:

> Yes, I have essentially set it up the same.  The income goes into the
> bank and then to the fund cash account.  I then move the money from
> the cash account to buy shares in the fund.
>

I don't understand why you transfer money from income to Assets:Checking and
then to 403B:Cash. That would make reconciling the Checking account a
nightmare, since none of the 403B entries would be on a bank statement.

I track a 403B account, and I transfer money from income directly into
403B:Cash. Of course, the 403B:Cash account is of type Cash, but that should
be obvious.


>
> I have an account at the same level called wealthRUs.  The parent
> company that all my funds are housed.
>

At the same level as what?

>
> The dividends operate the same way...  they are all handled in the
> fund account, that shows income in the income account. However, I will
> move it to the asset level.
>

I handle 403B dividends by showing them as Income:Deferred Dividends and the
balancing account as 403B:Cash.


> I don't really use gnucash to track taxes and all that so I don't
> really need it.
>
> I really want to track the investments etc.....
>
> Thanks for making it simple, too bad I figured it out before (with the
> help of others).
>
>
>
> One other thing... the asset cash account will continue to get smaller
> if I use it for the dividends.  eg reinvest the dividends in the fund
> account.  It shows a transfer of money to the asset:cash account.  How
> do I off set this decrease in funds (the opposing transaction)?  I
> can't zero out an asset account at the end of the year.  With the
> purchase of shares and transfer of money the opposing transaction is
> the income account.
>

This seems very confused. Remember:
Assets: What I own.
Liabilities: What I owe.
Equity: the difference between Assets and Liabilities (no real money in this
account)

Income and Expenses are merely used to track the sources and sinks of Assets
and Liabilities. They will grow without end unless you close them out at the
end of an accounting period.

<snip>

jomali