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Standard bookkeeping rules

The accounting rules in the Standard Solution allow for quick implementation / demoing of the function. You can use the rules as they are, or (as in many cases) make the rules to suit your bookkeeping needs.

Gains and losses on sales (sell transaction) is done like in FRS: The gain or loss on the sale of investments measured through profit or loss should be the difference between the time of sale and the end of the previous month.

Changes in the fair value of investments measured through profit or loss should be obtained as monthly changes. These value changes can be recorded with FA’s deferral function. Deferral helper tool will create “Value adjustment”- transactions. These transactions will modify bookkeeping values of open purchase lots. Read more: How to valuate portfolio for book keeping purposes?

Deposit

Deposit on Transaction date

Deposit worth 100 (trade amount)

 

Debit

Credit

Other Receivables (18003)

100

 

Clearing account (99900)

 

100

Deposit on Settlement date

Deposit worth 100 (trade amount)

 

Debit

Credit

Cash: Cash in bank (19001)

100

 

Other Receivables (18003)

 

100

Withdrawal

Withdrawal on Transaction date

Withdrawal worth 100 (trade amount)

 

Debit

Credit

Other Payables (34008)

 

100

Clearing account (99900)

100

 

Withdrawal on Settlement date

Withdrawal worth 100 (trade amount)

 

Debit

Credit

Other Payables (34008)

100

 

Cash: Cash in bank (19001)

 

100

Buy

Buy on Transaction date

Buy worth 100 (trade amount)

 

Debit

Credit

Trade Payables (33001)

 

100

Issued Capital (2001)

100

 

Buy on Settlement date

Buy worth 100 (trade amount)

 

Debit

Credit

Trade Payables (33001)

100

 

Cash: Cash in bank (19001)

 

100

Value adjustment - Loss On Financial Assets Reclassified To Fair Value

Value adjustment worth 20 (bookkeeping value reduces)

 

Debit

Credit

Gain (Loss) On Financial Assets Reclassified To Fair Value (63016)

20

 

Issued Capital (2001)

 

20

Value adjustment – Gain On Financial Assets Reclassified To Fair Value

Value adjustment worth 20 (bookkeeping value raise)

 

Debit

Credit

Gain (Loss) On Financial Assets Reclassified To Fair Value (63016)

 

20

Issued Capital (2001)

20

 

Sell

Sell on Transaction date (+20 profit)

Sell trade amount 100, purchase value 80

 

Debit

Credit

Trade Receivables (18001)

100

 

Profit

Finance Income (61001)

 

20

Issued Capital (2001)

 

80 (Purchase price)

Sell on Transaction date (+20 loss)

Sell trade amount 100, purchase value 120

 

Debit

Credit

Trade Receivables (18001)

100

 

Loss

Finance Income (61001)

20

 

Issued Capital (2001)

 

120 (Purchase price)

Sell on Settlement date

Sell trade amount 100

 

Debit

Credit

Trade Receivables (18001)

 

100

Cash: Cash in bank (19001)

100

 

Dividend

Dividend on Transaction date

Dividend value 6

 

Debit

Credit

Other Receivables (18003)

6

 

Dividends (61003)

 

6

Dividend on Settlement date

Dividend value 6

 

Debit

Credit

Cash: Cash in bank (19001)

6

 

Other Receivables (18003)

 

6

Management fees

Management fees on transaction date

Management fee worth 100 (trade amount)

 

Debit

Credit

Accrued Expenses And Other Liabilities (34002)

 

100

Finance Costs (62001)

100

 

Management fees on settlement date

Management fee worth 100 (trade amount)

 

Debit

Credit

Cash: Cash in bank (19001)

 

100

Accrued Expenses And Other Liabilities (34002)

100