Problem: How to record purchase of shares?
Solution: Use the program tools as shown.
If an entity purchases shares of third parties, then entry for investment in shares of another company may be done as:
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In this journal entry, the stock investment account is an asset account on the balance sheet, in which its normal balance is on the debit side.
This stock investment can be a long-term asset or a short-term asset based on the purpose of the shares' investment that was made in another company.
1. Create a corresponding GL Accountin Chart of Accounts for share acquisition or stock investments with section BS Current Financial Assets:
2. Create Cash Payment or Bank payment with type Other:
And choose created GL Account on the Payment Details tab and choose Company issued these shares:
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Dr Cash
Cr Dividend revenue
1. Create a corresponding GL Accountin Chart of Accounts for share acquisition or stock investments with section PL Finance Income, or use Finance Income GL Account:
2. Create Cash receiptor Bank receiptwith type Other:
Choose corresponding GL Account on the Payment Details tab and Income Item to recognize this receipt:
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