I’ve read several threads now about how people are using manager to track shares and I’ve started to do this too. I’m only dabbling on a very small scale at the moment and am in the market for short term gains (and hopefully no losses—otherwise, then I’m an investor ;P).
I understand and I think I would prefer to treat them as an asset and the purchase of the shares is easy (except I was conflicted whether to create an expense account for brokerage, or treat it like an inventory item that has additional shipping charged where you create a line item for the inventory and add the cost without a quantity so that it can be averaged in across the entire stock). Since I brought this up there, any comments on that would be appreciated (for the moment, I have created a separate expense item—I think that works best)
So I have created an asset account for it: Shares.
However since the market fluctuates and the unrealised value of these shares can change, how can I have it reflect a more accurate value? I’ve seen “Market Adjustment” used, and have create an asset account along side it, but how to make the actual entry? I don’t necessarily want to update it every day, but once in a while (possibly month ending) it would be interesting to see the net effect of the shares reflected in the balance sheet.
I tried going through Journal Entries, but it doesn’t balance and I don’t think I could create a P&L income/expense item for it, since the value is unrealised until traded back to cash.