My Security Value in Account Status shows an amount though I have no Holdings, how do I get rid of this?

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  • Updated 3 months ago
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Peter

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Posted 3 months ago

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David M

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I have not had the problem before, but would think if you posted a negative 'return of capital', you should clear the balance.
Any subsequent cash balance can be cleared with a 'misc income / expense' transaction.
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Peter

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Thanks David. I don't have a negative return of capital, I think this happened when I changed the date on some transactions and the system got confused about the P&L on my stock trades. I've deleted the transactions but to no avail. The P&L report is correct, but the Security Value is negative.

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David M

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Hi Peter
I was apparently unclear.
If you now go and enter a negative 'return of capital', you will clear the balance that is the cause of your problem. It will take out the value without impacting the number of shares - currently correctly zero.
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John Campbell

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The value in the account can also be the result of retained dividend associated with a dividend reinvestment. This occurs if there is a cash balance carried forward in your share plan account, eg with Westpac, ANZ and many other similar companies.
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Peter

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Thanks John, that's not my situation but I appreciate your assistance.
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Peter

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David, thanks for the clarification. If I enter the return of capital, this creates additional (incorrect) income in the P&L report, which I can only remove with a one-sided entry otherwise the balance sheet will be wrong.
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David M

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Peter
You are correct about the P & L effect. However, you need this to offset and correct the (incorrect) balance in the P & L account from having this 'unreal' asset value there initially.
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Peter

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Thanks David. Seems that double entry is an inviolable rule!