AccuraBooks Tracking Investments Bookkeeping – Part 3
Part 3 in this series of tracking investments in your QuickBooks Desktop file will cover selling your paper investments.
When you engage in the sale of your investment (or even a fixed asset), there are essentially three main categories to be concerned with and thus adjusted here:
- Cost Basis
- Gains or Losses as a Result of the Sale
- Cash Proceeds from the Sale
So, to get started here, let’s say last year you purchased 300 shares of XYZ equity stock for a total of $3000. Now, this year, you sold these 300 shares of XYZ equity stock for a proceeds total of $4500.
Your bookkeeping entry to recognize and close out the sale of these 300 shares would look something like this:
| Debit | Credit | ||
| XYZ Investments Asset | $3,000 | To reduce the original cost basis out of your books | |
| Gains from the Sale of Shares Income | $1,500 | To recognize your gains income | |
| Bank Account | $4,500 | To recognize the cash proceeds deposited into your bank account |
Stay tuned for part 4 of this investments tracking series.
Note: AccuraBooks is a bookkeeping firm only, so please consult with your C.P.A. for verification and clarification about the contents of this article.