Account for Return of Capital
In this example, a SuperFund has received a $20 return of capital for shares it owns in Australian Agriculture Company (AAC).
Log in to SuperFund and Select your entity.
From the Transaction menu, click Return of Capital.
In the Shares in Listed Companies - Return of Capital window, complete the relevant fields.
This will generate the following HandiLedger transaction.
The default account code 0821 is the account code used for Unfranked Dividends, but as this transaction is a Return of Capital, there are no tax implications. Therefore, if preferred, this account code can be amended to 0850 Change in net market value.
Depending on the account code 0821 or 0850, the Return of Capital will appear under either Unfranked Dividends or Changes in net market values in the Operating Statement.
The Return of Capital amount will remain in the system until the asset is disposed of. The Unrealised Capital Gains report will reflect the entry as a Cost Base Adjustment.