Hello Geoff,
Firstly, I must salute you for your very methodical and illustrative
explanation. It is really heartening to see the kind of special efforts
you put to first create the accounts, posting illustrative transactions
yourself, taking screenshots and arranging them beautifully, so that one
can understand easily. My profound and heartfelt thanks to you.
I adopted your second approach, as I need to report the taxable STCG.
However, I took little different approach by splitting the transaction
manually following the examples in your screenshot, and every thing fell
in place, closing balance of both the Mutual Funds, their current
valuation, STCG in Income head, realized gain in Advance Portfolio
report. I need little practice before I scrub my portfolio
automatically, as it has many entries, and I was bit hesitant, so I did
it manually but will certainly learn the same.
Once again thanks a ton and wish you a very happy new years ahead
My best regards to you Geoff.
Paras
*From: *Geoff [mailto:cleanoutmys...@gmail.com]
*Sent: *Tuesday, January 09, 2024 05:32 AM +5.5
*To: *Paras Desai; GnuCash User List
*Subject: *[GNC] posting of Switching of Mutual Fund
Hi Paras
This is very easy to do in GnuCash, and it will even calculate the
prices and capital gains (or losses) for you.
1. Use the Security Editor to create the Securities for both funds.
2. Create the Accounts for the funds and link them to the Securities.
3. Enter the Buy on Liquid - note how GNC calculates the Price.
4. Enter the Sell on Liquid, with Equity as the second account.
See attached "gnc_paras01.jpg" and note:
A. Price Database is automatically updated
B. Gain does not appear on any of your Accounts
C. Balance Sheet shows your Capital Gain as "Unrealised"
And that is all done and dusted...
...unless you need to "realise" your capital gains(losses) as
Income(Expenses) as tax time. If so, please read on.
GnuCash has a sensational feature called Lots that is designed to track
and realise your capital gains & losses, but it can be a bit daunting
for new users.
1. Open the Account for Liquid Fund
2. Actions -> View Lots
3. In the Lots window, click on "Scrub Account"
See attached "gnc_paras02.jpg" and note:
A. New Capital Gain/Loss transaction in Liquid Fund
B. Gain now shows in your Accounts***
C. Balance Sheet shows your Gain as "Retained Earnings"
*** By default, the GnuCash Lot Editor puts all Gains & Losses in an
account called "Orphaned Gains" - you need to edit the Gain transaction
and assign it to the appropriate Account - in this example, "STCG".
Hope this helps.
Regards
Geoff
=====
On 9/01/2024 1:19 am, Paras Desai wrote:
Hello Sirs,
I have an investment in a liquid Mutual fund and I every week
systematically transfer some amount to an Equity Fund (which is STP)
While doing so, there is an effect of Capital gain or Loss and the
money does not come to any account, but the fund gets transferred to
another fund automatically
The Transaction is like below
A. Liquid Fund : SWITCH OUT (PRACTICALLY SALE)
Units 773.14, Purchase Cost : 9696.630, Sales realization is :
10000, Short term Capital Gain is 303.370
B. Equity Fund: SWITCH IN (PURCHASE)
Units : 75.684, Value: 10,000
Here, Money does not come to my bank or security account
Normal Posting could be
Cr Liquid Fund : 9696.630
Cr Short Term Capital Gain : 303.370
Dr Equity Fund, 10000
I am just wondering, how this transaction can be effected in GNUCASH.
I tried to search for wiki and some old communication on this subject
but could not get the clear idea. Hence, thought of seeking help here.
Will very much appreciate any help
With my best regards
Paras
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