Long, In GnuCash reports the Unrealized Gains are simply a calculated quantity. I personally don't track my invetments in GnuCash because they are mainly long term secure securities so I am not that sure what is reported in the Balance Sheets.
I was really outlining the traditional pen and paper accounting procedure for doing this as nothing is hidden in the calculations by the program. There has been some discussion in the forum about the way the Unrealized gains are calculated and the GnuCash Concepts and Tutorial Guide Ch11 (https://www.gnucash.org/docs/v3/C/gnucash-guide/capgain_concepts1.html) .Section 11.4.2 deals specifically with how to convert the unrealized gains to realized gains when you sell an asset. I also find it a little bit hard to follow as the transactions are not set out in Dr and Cr format. There are three cases dealt with in the guide where your: 1 cost + unrealized gain = sale price 2 cost + unrealized gain > sale price 3 cost + unrealized gain = sale price In my opinion the headings for 2 and 3 are misleading as 2 is not an underestimate of the unrealized gain but the unrealized gain is an overestimate of the actual gain and similarly in 3 the unrealized gain value is an underestimnate of the actual gain. Table 11.1 shows the transactions ( in a from which I find a little unclear from an accounting perspective) for the first case for a sale price (130000) = cost(100000)+unrealized gain(30000). In the form they would appear in the registers they are respectively Dr Cr Income:Unrealized Gains 30000 Income:Realized Gains 30000 Assets:Fixed Assets:Degas:Cost 100000 Assets:Current Assets:Savings Account 100000 Assets:Fixed Assets:Degas:Unrealized Gains 30000 Assets:Current Assets:Savings Account 30000 In the second case Table 11.2 where the cost +unrealized gain (130000 overestimates the sale price 12000 the required transactions are: Dr Cr Income:Unrealized Gains 20000 Income:Realized Gains 20000 Assets:Fixed Assets:Degas:Cost 100000 Assets:Current Assets:Savings Account 100000 Assets:Fixed Assets:Degas:Unrealized Gains 20000 Assets:Current Assets:Savings Account 20000 Assets:Fixed Assets:Degas:Unrealized Gains 10000 Income:Unrealized Gains 10000 the last transaction is the adjustment of the Unrealized Gains to the value of the actual gain in the sale. the last case table 11.3 where the sale price (150000) is greater than the cost(100000) + the unrealized gain value the transactions will be: Dr Cr Income:Unrealized Gains 50000 Income:Realized Gains 50000 Assets:Fixed Assets:Degas:Cost 100000 Assets:Current Assets:Savings Account 100000 Assets:Fixed Assets:Degas:Unrealized Gains 50000 Assets:Current Assets:Savings Account 50000 Assets:Fixed Assets:Degas:Unrealized Gains 20000 Income:Unrealized Gains 20000 In the case of your transfer when you thansfer the USD to thw VND account provided the price in the database at the time matches the conversion rate the bank gives you then your unrealized gain + cost =sale price and you will need to create a transaction of the form to transfer your loss: Dr Cr Income:Unrealized Gains and Losses 1100d Income :Realized Gains and Losses 1100d plus the entries for the transfer of the money from USD to VND. The debit and credit are reversed from the example in Table 11.1 above because it was a gain in table 11.1 and you have incurred a loss. The realized gains and losses should now appear in your Income Statement report and the Balance Sheet will show a value of 0. David ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
