synthetic psuedo DRIP whole share purchase - how to enter?

[twj332]

I have couple of synthetic drips - where I get whole share purchase each month with cash left over - can you please explain to me the proper/correct way to enter the transaction for the shares and the cash?
Thanks

[Mark]

Hi twj332,

You could record this a couple of ways:

1) A distributed distribution for the total amount, plus a purchase of the single share.

2) A reinvested distribution for the amount of the one share, plus a distributed distribution for the remaining balance.

Both methods are equivalent from a performance point of view. Method 1 will generate more money taken out of the investment and separate money put back in, but they both end up with the same result.

[twj332]

Thanks for the help