Interesting that GC is throwing that Trading split in at all. The transaction
balances without it. I’ll presume this brokerage account for the fund and the
cash are both in AUD also?
Does manually adding:
Dr.(buy) Trading:CURRENCY:AUD $500
Satisfy GC and avoid the pop-up?
The two Trading splits would be superfluous but they should then balance.
If you let GC balance it, what does it insert?
Is that ANZ Cash account something special or just a cash type asset in AUD?
(effectively no different than Assets:Cash?)
Regards,
Adrien
> On Apr 18, 2019, at 3:10 AM, cicko <alen.sil...@gmx.com> wrote:
>
> Hi! Thanks for the feedback. Let me try to answer both your and John's
> questions and perhaps a few details along the way.
>
>> Let's say there is $1000 in 100 shares in IPE account.
>
> 2000-01-01 * Bought IPE
> Assets:Investments:Broker:Shares:IPE 100 IPE {10.00 USD} [2000-01-01]
> @ 10.00 USD
> Assets:Investments:Broker:Cash -1000.00 USD
>
>> The fund is shutting down and returning funds to the shareholders.
>
>> Now, I still have the same amount of shares (100) but they are only worth
>> ~$500, and I got $500 back in cash.
>
> 2019-04-01 * Return of capital
> Assets:Investments:Broker:Cash 500.00 USD
> Assets:Investments:Broker:Shares:IPE 100 IPE { 5.00 USD} [2000-01-01]
> @ 5.00 USD
> Assets:Investments:Broker:Shares:IPE -100 IPE {10.00 USD} [2000-01-01]
> @ 5.00 USD
>
> Ref:
> - question on SE:
> https://money.stackexchange.com/questions/107906/how-to-enter-return-of-capital-in-ledger-cli
> - Australian Tax Office (ATO) ruling:
> https://www.ato.gov.au/law/view/document?docid=%22CLR%2FCR201834%2FNAT%2FATO%2F00001%22
>
> First note that the numbers are simplified for the sake of example. The real
> return of capital was 3.5 cents per share, as per ATO ruling. So, what
> happens above:
>
> - the first transaction shows that IPE was purchased at $10 a share.
> - some background: the fund is shutting down its operations and is returning
> the capital to the shareholders
> - the Return of Capital transactions does two things:
> - shows a return of $500 to the cash account (this is what happened in the
> real world)
> - shows a repricing of the original cost. One split shows a sale of all
> the shares at the original price ($10) and "purchase" of the same quantity
> at the new price of $5.
>
> These are supposedly correct as, in the end, I've got $500 back. The number
> of shares has not changed, I still have 100 shares in the fund. The actual
> value has decreased but mainly due to the drop in the market price. And,
> finally, I have the new base price for those 100 shares. It is no longer $10
> but $5.
> This last point is important for the potential future Capital Gains
> calculation.
> I would like to show this ideally in one transaction because it balances and
> represents what actually happens. Technically, it should be possible (and
> perhaps is but I don't know how to enter it correctly).
>
> To answer John's questions - IPE was an equity fund on ASX, now delisted
> (http://www.delisted.com.au/company/ipe-limited). They've returned all of
> their capital over a few years and shut down operations.
> So, technically I don't have to worry about potential capital gains but
> that's beyond the scope of the original question. :)
>
> When I try to create this second transaction in GnuCash, I'm stuck at the
> following - https://imgur.com/vihbSst
>
> <http://gnucash.1415818.n4.nabble.com/file/t377766/vihbSst.png>
>
> The trading split is inserted automatically, due to the usage of Trading
> Accounts and that throws off the balance, I suspect, but I also may be
> wrong.
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