Handling a share portfolio

DuncanS Julie_A_C

Time for me to start accounting for share sales and buybacks now...

I don't think I need to account for CGT or discounts as my accountant handles all of that outside MYOB.

To keep things simple, I think I only need to account for actual money in/out of the accounts.

This is the process I anticipate - what do you think?

Create an 'Other Income' account called 'Profit/Loss on Shares'
When shares are sold, record a Receive Money transaction:
Allocate the number of shares sold x the original cost to that share's asset account, with the memo '#sold x original$ paid'
Allocate the brokerage to Profit/Loss on Shares as a negative, with the memo being eg. 'brokerage on Rio sale'
Allocate the remainder to Profit/Loss on shares as a positive (or a negative if they were sold at a loss) with the memo being, eg. 'profit on Rio sale'
   eg. if 50 Rio shares were sold at $100 each, with brokerage of $20, and the original price paid was $75 each:
   Allocate (50 x $75) to the Rio asset account, memo '50 x $75'
   Allocate -$20 to Profit/Loss on Shares, memo 'brokerage on Rio sale'
   Allocate the balance (should equal 50 x $25) to Profit/Loss on Shares, memo 'profit on Rio sale'

Notes:

If the shares were purchased on different occasions, sales to be allocated on a FIFO basis.

For share buybacks, where there is no brokerage, I imagine the method would be the same as above?

How's that look?