[GNC] Rounded Up/Down Share Purchase with Dividend

[Jim DeLaHunt]

Hello, xboxboy.magela:

You ask how to account for the $2 that has "vanished". This jumps out at 
me as the core of the problem:

> Dividend (franked): Dividend reinvestment account $10
> Buy: stock purchase: 1 unit $8, total buy $8
If your dividend after franking is $10, and you buy stock for $8, then 
there should be $2 cash left over. You do not show that left over cash 
in your transaction. Where does that money go in real life?  Add a line 
for that in your transaction, and it should balance.

Does this answer your question?

Best regards,
     —Jim DeLaHunt, Vancouver, Canada

On 2023-06-07 08:01, xboxboy.mageia+GnuCash wrote:
> Hi guys,
>
> My issue is this: I'll provide an example: Note, I'm in Australia, so 
> we have franked (taxed) dividends that we claim a tax break on.
>
> Total dividend $12; made up of
>
> Franked dividend $10
>
> Imput credit (tax credit) $2
>
> (So in this example $2 is paid to the tax office by the company, and I 
> receive only $10)
>
> But I reinvest this dividend: Say the shares are $8.
>
> That means with my $10, I can get 1.25 shares, but it gets rounded 
> down/up to the nearest share.
>
> So I get one share for a cost of $8.
>
> So normally I'd enter it like this:
>
> Expense: tax credit $2
>
> Dividend (franked): Dividend reinvestment account $10
>
> Buy: stock purchase: 1 unit $8, total buy $8
>
> Total dividend income $12
>
> Cost of share(s) $8 (normally from that dividend reinvestment account)
>
> (but now I'm $2 unbalanced)
>
> How do I account for the $2 that has now 'vanished'. With my other 
> companies, this amount gets put into an account, and I get to apply it 
> to the next dividend. But with this company, they don't do that, the 
> amount is simply 'gone'.
>
> Hope that makes sense, any ideas most appreciated,
>
>
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