Fund Manager
Contact Us

Re: Accounting Fees

[ Q2 00 - Q2 01 Archive ] [ Current Message Board ] [ Archives ] [ Search ]

Posted by Mark on April 03, 2000 at 23:50:32:

In Reply to: Accounting Fees posted by Clive on April 03, 2000 at 11:12:25:

: I'm not sure of the correct method to enter the following transaction and end up with the correct adjusted cost base:
: This is a first time purchase of this no-load mutual fund.
: It has a one-time account opening fee of $40.00
: Total investment, including one-time fee is $5000.00
: Share price $15.79
: Total shares received 314.1229

: Please comment.

: Regards,
: Clive

Hi Clive,
You could choose to enter this account fee as a commission fee on
this initial purchase, or you could enter it as a separate transaction.

case 1:
buy transaction for 314.1229 shares at 15.79 for $4960, and a commission fee of $40.

case 2:
buy transaction for 314.1229 shares at 15.79 for $4960.
account fee transaction (non-reinvested) for -$40.

Either case will be accurate, and give you the correct cost basis.
Note the rounding errors here, you should record the value/shares accurately,
and let the share price "float". See "Recording Transactions Without Rounding
Errors" in the online help.

Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

Replies: | Search | Site Map | About Us | Privacy Policy