Handling Return of Capital in Gnucash

[Alton Brantley]

I didn't see any further discussion of handling the Return of Capital in this list, so I struggled a bit to figure out how to manage it. Here's what I do:

I received a Total distribution of $2/shr for 100 shares of XYZ, 1.50/shr is qualified Dividend and 0.50 is Return of Capital. I bought XYZ for $75/shr
1. Credit the Income:Dividends:XYZ for the full distribution
	Div	Distribution			Income:Dividends:XYZ					$200.00
		Record DIstribution		Brokerage				$200.

2. In the Stock Account, enter the following splits:
	A. Reduce the Income:Dividends:XYZ  by the total return of capital
	B. Reduce the XYZ account by the total return of capital

	STOCK:XYZ
	Div	Return of Capital		Income:Dividends:XYZ		$50.
	Dist	Reduction of Basis		STOCK:XYZ							$50.

If The Original Purchase of 100 Shares XYZ at $75 is put into a lot, after the 2nd transaction above
is entered, there will be a negative gain in the amount of the return of capital.

These transactions will have the following two effects
Income:Dividends:XYX will show the original Distribution Dividends - the Return of Capital