Your MYOB software isn't specifically designed to track the buying and selling of shares, but it's flexible enough to be customised for this purpose. We'll step you through one method you can use to ...
Updated 9 years ago
Version 1.0
Blog Post
Adrian,
Thank you for your post.
I have some ideas, comments and procedures that I have listed below.
For tax and accounting purposes for shares, it is necessary to decide whether one is a Trader or Non-Trader.
The accounting that I record for my clients is that of a Non - Trader and this is the basis for my comments.
A Non -Trader will setup the Share Portfolio as a Non-Current Asset with headers such as ASX Listed Shares, Overseas Shares, Shares in Non-Listed Companies and Shares in Associated Companies.
I will limit my discussion to ASX Listed Shares.
On purchase, the Stockbroker will issue a Buy Contract Note.
I would set up a ledger called 1-2010 ANZ Banking Group Limited 200u 200u being the number of shares held.
I would setup up a Card called ANZ Banking Group Limited - Purchase
I would use Spend Money to record the purchase of the shares.
Chq # would be name of the Stockbroker eg ETrade.
Date would be the date of the Contract Note being the Transaction date on the Contract Note.
Amount is Total Amount $ on Contract Note.
None of my clients are able to claim the GST on the Brokerage so I do not need to use a separate line for the Brokerage.
On sale, the Stockbroker will issue a Sell Contract Note.
Lets say the above 200 ANZ shares are sold.
I would setup up a Card called ANZ Banking Group Limited - Sale
I would use Receive Money to record the sale of the shares.
The Buy Contract Note and Sell Contract Note are stapled and the difference between the Sale Price and the Purchase Price calculated. This is the Capital Gain/Loss on these shares.
There may be additional shares in the 1-2010 ledger if a Dividend Reinvestment Plan had been utilised.
The Capital Gain/Loss is calculated on any Dividend Reinvestment shares.
Under Other Income, I setup up a Header called Capital Gains/Losses.
I setup 3 accounts being Capital Gains <12 months, Capital Gains > 12 months and Capital Losses.
A journal is used to record the Capital Gain /Losses.
The amount in the 1-2010 ledger should be nil.
The 200u is changed to sold March 2016.
I mark to market by using a ledger called Inc/Dec ASX Shares FY16.
I keep a separate Mark to Market Ledger for the past 4 years.
The Share Portfolio lIsting provided by the Stockbroker agrees with the Header total of ASX Listed Shares.
Internet Access to the Stockbroker and the Share Registry should be arranged.
On purchase of shares, the Company's Share Registry on behalf of the Company will write asking for TFN (if not held by the Share Register), Bank Account Detail as few listed companies issue dividend cheques,
Dividend Reinvestment Plan details if offered by the company etc.
Chess Holding Statements are issued on a monthly basis (if Chess sponsored by your Stockbroker)..
The details on the Chess Holding Statements should be agreed to MYOB.
Contract Notes and Holding Statements should be keep for five years after disposal of shares
Duncan Smith
Business Advice + Tax