Handling Investment Switch

[John Ralls]

> On Nov 11, 2015, at 6:30 AM, venkatadri kr <venkatadri_kr at yahoo.com> wrote:
> 
> Dear all
> I have been using Gnucash for over 4 years. i recently started using the stocks/mutual funds option. I have a query
> The fund that i invested in with x units and y rate has switched to another fund with a units and b rate. There is no sale transaction and hence no tax.
> How does one handle this in Gnucash ? thanks in advance

The formal way is to create the new security and an account for it and just transfer between the accounts. The best way to do this is in split view. Supposing you have fund FFOOX being merged into FBARX at a rate of .9433 shares of FBARX for every share of FFOOX, and you had 1000 shares of FFOOX. In the FFOOX account in split view, create a transaction that looks like:

11/11/2015    Merge FFOOX into FBARX
                                         Assets:Funds:FFOOX      -1000.00
                                         Assets:Funds:FBARX        943.30

Note that the price and debit/credit fields are blank!

The informal way is to just change the account and the number of shares in your buy transaction, pretending that you had FBARX all along.

Regards,
John Ralls