Trial Balance does not include amount of Return of Capital Investment splits

John Ralls jralls at ceridwen.fremont.ca.us
Mon May 15 23:42:00 EDT 2017


> On May 15, 2017, at 7:41 PM, Chris Good <chris.good at ozemail.com.au> wrote:
> 
> Hi,
> 
> 
> 
> I'm airing this before I raise a bug.
> 
> 
> 
> I've noticed that if you do a Return of Capital transaction [1]
> 
> I.e. Stock split with Shares=0, Price=0, Sell=Return of Capital value,
> 
> the Trial Balance no longer balances by the value of the Return of Capital.
> 
> 
> 
> The stock line value in the report does not include the Sell value of the
> RoT split.
> 
> 
> 
> Can anyone throw any light on this?
> 
> 
> 
> The Balance sheet also shows the incorrect asset value of the stock, but it
> still balances
> 
> because it (incorrectly?) also shows Unrealised Gains in Equity with the
> value of the RoT.
> 
> 
> 
> [1] https://www.gnucash.org/docs/v2.6/C/gnucash-guide/invest-retofcap.html
> 
> 
> 
> Regards, Chris Good

A return of capital when booked that way creates an unrealized capital gain: You have the same number of shares but a lower basis. You can either recognize the capital gain or find a different way to record the RoC.

Regards,
John Ralls



More information about the gnucash-user mailing list