[GNC] How to Realized Gain/Loss when turned on trading account ?

David Cousens davidcousens at bigpond.com
Sun Apr 12 16:22:12 EDT 2020


Long,

The original balance sheet screen shot was taken with an attempt to transfer
the AUD trading account Balance to a REALIXED GAINS Income account. It was
at that point I realized that transactions to and from the trading accounts
are blocked. I then forgot to delete it before taking the screen shots.  

The Balance Sheet with that transaction deleted is attached here
Trading_test_balance_sheet_realized_gains_transaction_deleted.png
<http://gnucash.1415818.n4.nabble.com/file/t375329/Trading_test_balance_sheet_realized_gains_transaction_deleted.png> 
.

That takes it out of the Income Statement as well
Trading_test_IncomeStatement_Realized_gains_transaction_deleted.png
<http://gnucash.1415818.n4.nabble.com/file/t375329/Trading_test_IncomeStatement_Realized_gains_transaction_deleted.png>  

Long  
If you open the file I sent you and go to the Imbalance AUD account and
delete the transaction there you will get these results. 

As per the parallel discussion with Adrien, from an accounting perspective I
don't believe the Trading Gains and Losses should be included in the Balance
Sheet but should be in the Income Statement. That is for a discussion with
the developers.  

Adrien,

Those who were arguing that Trading Losses should not appear in the Balance
Sheet but in the Income Statement obviously lost the argument. This is the
Income Statement after deleting the transaction I had tried to create to an
Income Realized Gains account. There may be a practical reason for this as
in many/most jurisdictions capital gains are treated differently from other
profit in taxation law but I still would have included it as a separate
heading under revenues for gains and a separte sub heading for expenses. 
Something like

Operating Revenues
Operating Expenses
Trading Revenues
Trading Expenses 

would allow you to generate totals for the operating profit  and the capital
gains profit.  I will have to track down that previous discussion and see
what the conclusion was.


David



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David Cousens
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