How to book stocks/shares in balance sheet?

If I purchased stocks from the stock market, how should I book it in my personal balance sheet?

As assets.

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Depending, are you going to be “investing or trading”. For investing you could have one BS Asset - Shares account or you could have individual BS Asset - Share accounts - depending on the number of stocks you are planning to hold. If it was greater then 5, you could consider using the Fixed Assets tab. When the Custom Control Accounts feature arrives you will be able to create a Shares group within that tab. For investing, keep the total cost together, don’t separate out the brokerage.

For trading, you could use the Inventory Items tab - a stock of various share holding. Here you have the choice of separating the brokerage and allocating to a P&L expense account

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Thanks, this helps a lot!

What if my long term investment, like an Apple stock, drops in value. Should I book it or not? And if I should, how should I book it? (when I put the stock in BS Asset - Shares account tho, I can’t put how much amount of stock i own, only the value. Does the amount matter in this case?)

That’s a personal choice. Do you want your personal BS to reflect cost price or market value. If you have other Assets, such as a house, how are you reflecting them in the BS.

You would take up a Journal that reflects the movement since the purchase or last valuation. This can be displayed in the BS in the following way - Dr/Cr Market Adjustment : Cr/Dr Asset Revaluation

If you are taking them up as a starting balance entry then that is true, but if you are purchasing after your start date then you can add all that detail in the “Notes” box.

An alternative starting balance entry for the shares could be to use a Journal, then the “Description” or “Notes” box would be available. Used Personal Wealth instead of Owners Equity as you aren’t being a “business”