Re: Recording Funds Coming into and out of Portfolio

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In Reply to: Recording Funds Coming into and out of Portfolio posted by Dave K on March 30, 2005 at 19:59:15:

: Hi,

: How should I record cash transfers between accounts? Ie., I have a Canadian and US Dollar account, how should I best record a transfer of 5000CAD to the US account?

: As well, if I pull money out of my domestic portoflio (the Canadian portoflio) for my personal use (thus reducing the capital in the portfolio) how would I best record this (these) entry(ies)?

: Thanks.

Hi Dave,

There's not too much to these. You would just record a sell to take money out, and a buy when you add money in, whether it was from a transfer, or out of your own pocket. You always record transactions in the native currency for an investment. So, if you took 5000 CAD out, and this was 3500 USD, you would record a sell of 5000 CAD and a buy of 3500 USD.

Normally, when you take money out, or put money into an investment, the assigned default cash account for that sub-portfolio will be debited/credited with the proceeds. If you are recording the transaction in the default cash account itself, then there is no corresponding entry in any other investment.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

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