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PS Cashbook

Investment Register - Account Setup

Detailed Description

Chart of Accounts setup: Cashbook provides the capability to maintain an Investments Register to track details of investments - for example, shares, fixed term deposits, unit trust investments, rental property, etc. The Investment Register can be used to maintain details of the purchase of investments as well as the related income and capital gains.

Automatic updating of the Investments Register can occur via cashbook transaction entry. In this way, the investments register can be updated as purchases or sales of investments (or related income & expenses) are entered into cashbook. Alternatively, the investments register can be maintained independently of any other transactions.

Accounts needed when using the Investment Register to track details of share investments:

  1. Setup an Asset account.
  2. Setup an Other Expense account for the purchase of Share Investments.
  3. Setup an Other Income account for the sale of Share Investments.
  4. Setup an another Other Income account for share income, dividend, distributions, etc.

 

Step 1 - Setup Asset account - Share Investments 

This is so the value of your share portfolio is reflected on your balance sheet as an asset.

  • Click on the Chart tool bar option.
  • To add a new account, click on the Add button.
  • To edit an existing account, select the account and click on the Edit button.
  • Chart of Accounts setup:
    • Account Code: 413
    • Description: Share Investments
    • Account Type: Asset
    • GST Category: 10. Non-reportable Payments
    • Click on the OK button to save.

 

Step 2 - Set up an Other Expense Account - Shares Purchased

  • Click on the Chart tool bar option.
  • To add a new account, click on the Add button.
  • To edit an existing account, select the account and click on the Edit button.
  • Chart of Accounts setup:
    • Account Code: 193
    • Description: Purchase - Shares
    • Account Type: Other Expense
    • GST Category: 10. Non-reportable Payments
    • Register Link: Investments
    • Balance Sheet Link: 413 Share Investments
    • Click on the OK button to save.

 

Step 3 - Set up an Other Income Account - Shares Sold

  • Click on the Chart tool bar option.
  • To add a new account, click on the Add button.
  • To edit an existing account, select the account and click on the Edit button.
  • Chart of Accounts setup:
    • Account Code: 093
    • Description: Sale - Shares
    • Account Type: Other Income
    • GST Category: 10. Non-reportable Receipts
    • Register Link: Investments
    • Balance Sheet Link: 413 Share Investments
    • Click on the OK button to save.

 

Step 4 - Set up an Other Income Account - Share Income/Dividends

  • Click on the Chart tool bar option.
  • To add a new account, click on the Add button.
  • To edit an existing account, select the account and click on the Edit button.
  • Chart of Accounts setup:
    • Account Code: 003
    • Description: Dividends/Share Income
    • Account Type: Other Income (Other Income if the investment activity is not part of the main business e.g. farming. Operating Income if it is part of the business.)
    • GST Category: 10. Non-reportable Receipts
    • Register Link: Investments

 

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