David T. wrote: > For those who *do* have such holdings, a balanced transaction will still fail > the trial balance if the gain or loss isn?t entered. In this instance, there > will be no entries in IMBALANCE-XXX, since each transaction balances. > Example: buy 10 shares of X for $100, using cash from your checking account > (credit/debit of $100). Then sell those shares for $150 (debit/credit of > $150). > Both transaction balance?but where did that extra cash come from? Without > entering the gain of $50 as income, the Trial balance will fail.
Is that really what happens? I can't understand why, if it does. Yes, you end up with an extra $50 in cash, and you also end up with MINUS $50 in the investment: the original debit of $100, and the sale credit of $50, leaving a credit (minus) balance of $50. As far as I can see, the trial balance still balances. Of course, a negative balance in an investment account should raise a red flag when (if) yo notice it: "Oops, I forgot to enter the gain as a transaction." But I don't see how it should make the trial balance fail. BTW, instead of a separate transaction, I might record the gain as a split: Assets:Cash $150 debit Assets:Investment $100 credit Income:Gain on investments $50 credit Is there any disadvantage to doing that, versus two transactions? Assets:Investment $50 debit Income:Gain on Investments $50 credit Assets:Cash $150 debit Assets::Investment $150 credit -- Stan Brown the_stan_br...@fastmail.fm http://BrownMath.com http://OakRoadSystems.com/ _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
