Accounting for Stocks and Shares Investments including a share split
Some examples of how the system deals with events associated with stocks and shares transactions is shown below:-
| Transaction | Holding | Cost of Holding | Transaction Unit Price | Market Value | Gain/(Loss) Realised to SoFA | Gain/(Loss) UnRealised |
|---|---|---|---|---|---|---|
| Number | £ | £ | £ | £ | £ | |
| Opening Balance | 500 | 55,950.00 | 111.90 | |||
| Addition
+150 |
650 | 72,450.00
£55,950.00 + (150 x £110.00) |
110.00 | 71,500.00
650 x £110.00 (the market price now) |
(950.00)
500 x (111.90 - 110.00) |
(950.00)
£71,500.00 - £72,450 |
| Disposal
-100 |
550 | 61,260.00
£72,450.00 - (100 x £111.90 the price of the tranche selected for disposal) |
115.00 | 63,250.00
550 x £115.00 (the market price now) |
3,250.00
650 x (115.00 - 110.00) |
1,990.00
£63,250.00 - £61,260.00 |
| Share Split
+550 new shares issued as 2 for 1 |
1,100 | 61,260
no change |
57.50
2 for 1 share price half of £115.00 |
63,250.00
1,100 shares at £57.50 |
1,990.00
£63,250.00 - £61,260.00 |
|
| Revaluation | 1,100 | 61,260.00
no change |
60.00 | 66,000.00
1,100 x £60.00 |
2,750.00
1,100 x (£60.00 - £57.50) |
4,740.00
£66,000.00 - £61,260.00 |