Member Withdwal ?
| HelpRegister |
Member Withdwal ? Hi, I have a member in my club who contributed 200 dollars to join back in Feb. 2012. This member stated yesterday that he wanted to withdrawal his account in full. We had cash to pay this amount owed to him in our brokerage account without having to sell any stocks. I mixed up the steps of the withdrawal process and withdrew him from the club without paying him his money owed that is now valued at 155 dollars. This caused the cash balance in our TD account to be 155 dollars off from the Bivio cash account. I attempted to correct this by adding a new payment for the withdrawing member for the 155 dollars, then created a pending member withdrawal account and transferred the 155 dollars into this account. Once the check is cashed for the 155 dollars and taken out of the TD account our cash balance will be correct. I was wondering if this was the correct way to fix this mix-up or will this cause issues later for the remaining members? I also noticed that his adjusted cost basis is now listed at 0 and the 200 dollars was divided between the remaining members, is this correct or is that due to the mix-up on how he was withdrawn from the club? Hope that all made sense, and any help or insight is greatly appreciated!! Dear Dave, I think you are making this way more complicated than it needs to be. All you need to do is enter a single withdrawal for the amount you paid him on the date you paid it. You can fix your records by deleting everything you did enter and reentering that withdrawal. I don't understand why you feel you had to enter a payment for him after you had entered the withdrawal. Of course, I may not be understanding what you were trying to accomplish.. If so, feel free to ask more questions. Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe Thanks Laurie, I didn't realize I was able to delete the withdrawal and redo it. The real problem is that I didn't have the checking account set up for the club so I withdrew him without actually paying him first. I am getting the checking set up soon so I just post dated when he will be paid and have the money now in the pending withdrawal account. Thanks for the help. Just so you and everyone else understand that he is not withdrawn from the club until the transaction date that is on the withdrawal. That means his share of ownership is still impacting everyone elses share of income and expense allocations. I'd recommend that you enter the withdrawal in the pending withdrawals account as of the date he was no longer a member of the club. That will mean your pending withdrawals account will show a negative balance, indicating a liability that your club has. The point when he cashes his check is when you would enter the transfer from your brokerage account to the pending withdrawals account. Making entries this way allows you to track the cash flow in your brokerage account and makes it easier to balance each month. If you are a new club, I'd also recommend that you consider operating without a separate credit union account. TDAmeritrade will give you checking. It's easier to keep your records if you only have one financial account to track. Just a thought. Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe |
|
||||||