Re: Accounting Fees
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Posted by Mark on April 03, 2000 at 23:50:32:
In Reply to: Accounting Fees posted by Clive on April 03, 2000 at 11:12:25:
: I'm not sure of the correct method to enter the following transaction and end up with the correct adjusted cost base:
: This is a first time purchase of this no-load mutual fund.
: It has a one-time account opening fee of $40.00
: Total investment, including one-time fee is $5000.00
: Share price $15.79
: Total shares received 314.1229 : Please comment. : Regards,
: Clive Hi Clive,
You could choose to enter this account fee as a commission fee on
this initial purchase, or you could enter it as a separate transaction. case 1:
buy transaction for 314.1229 shares at 15.79 for $4960, and a commission fee of $40. case 2:
buy transaction for 314.1229 shares at 15.79 for $4960.
and
account fee transaction (non-reinvested) for -$40.
Either case will be accurate, and give you the correct cost basis.
Note the rounding errors here, you should record the value/shares accurately,
and let the share price "float". See "Recording Transactions Without Rounding
Errors" in the online help.
Thanks,
Mark
--
Mark Beiley
Fund Manager for Windows 3.1x/95/98/NT
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