[GNC] Owning stocks which are not publicly quoted - which account type suits better?

[Murugan Mariappan]

Not sure If you want to maintain stock issued : create an equity account and the entries should be typically



Debit              Cash or other item received                                                                            (shares issued x price paid per share) or market value of item received
Credit      Common Stock                                                                                                (shares issued x PAR value)
Credit          Paid in capital in excess of par value                                                         (difference between value received and par value of stock)

For capturing your own holding , you may need to create transaction affecting your bank account and security holding. So the above transaction will be modified to

Debit              Cash or other item received                                                                            (shares issued x price paid per share) or market value of item received
Credit      Common Stock issued to public                                                                    (shares issued x PAR value)
Credit          Paid in capital in excess of par value, issued to public                            (difference between value received and par value of stock)
Credit              Bank Account for your own holding value                                                     (shares held x PAR value)
Credit          Paid in capital in excess of par value, own holding                                  (difference between value received and par value of stock)



Saludos Cordiales


Murugan

________________________________
From: gnucash-user <gnucash-user-bounces+m.muruganandam=hotmail.com at gnucash.org> on behalf of Christopher Lam <christopher.lck at gmail.com>
Sent: 24 September 2024 21:25
To: Boniforti Flavio <boniforti.f at gmail.com>
Cc: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Subject: Re: [GNC] Owning stocks which are not publicly quoted - which account type suits better?

Interesting question... as someone who's been intimately involved in some
gnucash code improvements, I have no idea how to account for "my own
company stock share".

Could anyone more qualified (and with knowledge of double-entry as it
applies to personal *and* own company (cf publicly traded company as
investment vehicle) books?

How would the usual company shares activity (eg stock split, dividend,
return of capital, notional distribution, etc) be recorded as?

On Wed, 25 Sept 2024 at 04:57, Boniforti Flavio <boniforti.f at gmail.com>
wrote:

> Hi.
> I'm partner and own stocks of the company I work for. This company is not
> on the public market.
> The stock value is defined once per year and dividends are then paid out.
>
> Do I understand correctly, that I don't have to set up a "stock" type
> account for this, as those stocks are not publicly traded?
>
> And the dividends are an account of type "income" - right?
>
> Thanks,
> F.
>
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