|
Author
|
Topic: Account balances in transactions
|
edgiamboi
Member
|
posted 08-18-2003 11:39 AM
  
How would you do the following transactions and who is the payor and which account for each transaction?
1. From a Retirement/Deferred IRA Asset account which we will call "Broker IRA" with an asset value of $30,000.00, you are to draw out $10,000.00 as an IRA distribution by a check. This is income in the tax schedule.
2. Deposit the check in a checking account that has a balance of $1,000.00.After the entries made in the above transactions, show balances as follows:
Broker IRA $20,000.00
Checking Account $11,000.00
IRA Distribution $10,000.00 The IRA distribution should show up in the tax schedule as income. I posted the withdrawal as an IRA Distribution so that came out OK but the deposit if I use the IRA account as payor then the balance of the IRA account gets messed up and if I use Transfer Clearing account I don't balance transfers. If I use Transfer Clearing account for both transactions then I don't get the IRA distribution entree.
IP: Logged |
Cathcart
Member
|
posted 08-20-2003 10:27 AM
As it happens I am just working on a similar transaction, withdrawing the IRA in full. Receive 12,000 in cash, total investment was 22,500. If I (using a cash journal)
(a)sell the IRA for 12,000 and post a "Loss on IRA" of 10,500, then the IRA is removed from the balance sheet, but the income reflects the loss and not the IRA income.
(b) receive 12,000 by selecting as income account "IRA Distributions", sell the IRA at zero (using the investment transaction journal), the income stmt reflects 12,000 IRA Distributions, the IRA is removed from the balance sheet, the loss however is 22,500.
How should this be handled?
IP: Logged |
fni_support
Moderator
|
posted 09-04-2003 06:22 PM
This is a great question. Please see the post Balancing Transactions for an example of how to handle this type of transaction.---------------------------------------------
George
Financial Navigator Int’l [This message has been edited by fni_support (edited 09-04-2003).]
IP: Logged | |
Navigator User Forums
UBBFriend: Email This Page to Someone! 
