I am taking a look at the documentation section, but I am still a bit confused. This is the first time I use accounting software and I`m not familiar with the workflow and with some concepts.
Here is what I'm trying to model in MMEX: my bank offers investment options, and I applied for an investment fund. Every month, my bank automatically withdraws a certain amount of my bank account (for example $50) and buys this amount in the fund shares for me. The investment funds are also from my bank. I will call my bank "MyBank".
Here is what I tried to do in MMEX:
- I opened a Stock account called MyBank_Broker (as my bank acts as the broker). I left the initial balance as $0.00.
- I created an initial stock investment, in a company MyBank_Company (as the investment is in funds of my bank). In this investment I set the amount of shares I have today, and also their price, for example $1000 for 500 shares with $2 a share.
- I now have, inside MyBank_Broker, a Stock account called MyBank_Company, where I can see the operation of purchasing of $1,000.00 of shares to MyBank_Company. I also set the initial balance for this account as $1,000.00.
- The last step created a Share Account, MyBank_Company, where I can see exactly the same information as my MyBank_Company Stock Account.
I am attaching some screenshots of the steps I performed.
If I understand correctly, also, the Share Account for "Company X" exactly mirrors the Stock Account for "Company X"? If so, what is the purpose of having these two?
Thanks for all the help.
Regards