Reinvestment Residual Account
I have a fund with a Reinvestment Residual account tied to an investment that has been disposed of. There is a small balance in the account that I wish to know what to do with.
Thank you.
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Hi John,
Thank you for reaching out and creating a Community Post.
Based on the details you’ve provided, in this situation, you can clear the remaining balance in the Reinvestment Residual account by recording a journal entry in the Transaction List screen.
From there, simply journal the remaining balance to the appropriate account (for example, a relevant income or expense account, depending on the nature of the balance). Once happy select Post.
Please let me know if you have any further questions, I am happy to help out.
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Thanks for responding, Andre.
I have also raised the issue with the fund auditor, and will update this post with his response.
Kind regards,
John Morris
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If you lookup the DRP information of the company you will find their cash residual balance policy on ceasing to be a share holder... It will almost always be 1) refunded OR 2) donated to a charity of the company's choosing.
In the case of option 2 you simply write off the balance to an expense account 37500/xxxxx is the best account to use.
In the case of option 1 you just wait for the refund and code to 62550/xxxxx
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Thanks John,
I am looking forward to hearing the auditor's response.1 -
Thank you, Richard and Andre.
Richard, I will do that. Thanks for your advice.
Kind regards,
John Morris
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Andre, I haven't heard from the auditor, yet.
Richard, you were right on the money! I looked up BHP's DRP policy and found that residual balances will be refunded, if $10.00 or more, or donated to charity, if less.
Thank you both. I know what to do with this amount now.
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