Adding to an investment

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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cbrown
Posts: 94
Joined: Sun Dec 21, 2014 7:50 am

Adding to an investment

Post by cbrown »

We are adding to an existing investment from our checking account. I have an Asset account and a Fund Balance account set up, with sub accounts for unrealized gains and losses. We only use one Fund. I’m struggling with how to account for the check we wrote to the Mutual Fund company. I can’t figure out what account to debit and get the existing Asset and Fund Balance accounts to come out correctly. This is not income nor expense but needs to show up on thee balance sheet. Thanks.

NeilZ
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Re: Adding to an investment

Post by NeilZ »

cbrown wrote:
Thu Mar 31, 2022 8:08 am
We are adding to an existing investment from our checking account. I have an Asset account and a Fund Balance account set up, with sub accounts for unrealized gains and losses. We only use one Fund. I’m struggling with how to account for the check we wrote to the Mutual Fund company. I can’t figure out what account to debit and get the existing Asset and Fund Balance accounts to come out correctly. This is not income nor expense but needs to show up on thee balance sheet. Thanks.
OK ... backup the accounting database before you do anything else so you can revert if necessary.

The check you wrote to the investment company came out of Operations checking, right? You used Accounts Payable, right? If so, you're going to need to enter a transaction in Funds Accounting that DEBITS the new Asset Account and CREDITS the Fund Balance account. Make sure you account for any fees that the company may charge for the initial setup as expenses, and NOT as part of this investment.

I'm fairly sure the system will include these new assets and fund balance accounts as part of the Balance Sheet, so run the Balance Sheet report and INCLUDE unposted transactions to verify.

IF you didn't use Accounts Payable to write the check how did you do that?
Neil Zampella

Using PC+ since 1999.

cbrown
Posts: 94
Joined: Sun Dec 21, 2014 7:50 am

Re: Adding to an investment

Post by cbrown »

Used a manual check and entered the transactions. All is well and everything balances. Thank you.

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