Entering Stock purchases

[Carolyn]

I'm just getting started with iCash and having difficulties with recording the purchase of stock. I take funds from my bank account but get stuck on which target account to use as I need to show this as an asset on the balance sheet but also an expense on the P&L statement. It seems simple in manual accounts but I'm not familiar with computer accounts systems and would welcome an idiots guide on how to do this.

Thanks
Carolyn

 

[stanbusk]

You just have to create an account of type 'Portfolio' and use it in your transaction. However purchasing stocks is not an expense. Fees are an expense.

 

[Carolyn]

thanks for the response. My explanation of the query was confusing. When I mention 'stock' I'm referring to the products I sell in my business. If I buy products they are an expense to my business hence showing up on the P&L and when my products sit in my shop they are an asset to my business and hence should show up on the Balance sheet. How do I show this in iCash.

Carolyn

 

[stanbusk]

After entering your expense account add a new transaction from a startup account to the asset account. I don't think this is 100% correct but it could work. An accountant may give a better solution to this.

Personally I would enter transactions between the bank account and an asset account.