How to handle a Treasury Bill

#1 12-04-2006, 02:54 PM

I enter all T-bill purchases as a CD, not a bond as Money recommends. I
regularly rollover over 28-day and 3- and 6-month bills, with each term
listed as a separate CD. I buy at net cost and redeem at "value" plus
interest. Trying to enter these as bonds never worked right for me.

"alocksley" <lahnkv[at]hotmail.com> wrote in message
news:rSGch.41$Ov5.36[at]newsfe10.lga...
- quote -

> MS Money 2005
> I record the purchase of a 10K 6-mo T-Bill with the number of shares
> (10000) and the auction price (say 97.55). as a buy with a quantity and
> price but no accrued interest.
> At maturity I try to "redeem CD/Bond" but it does not handle the
> "accumulated interest" properly;
> If I put in the amount + interest there's interest left in the register.
> If I record only the total amount I get at maturity (10000*.9755 +
> interest) = 10000, the total redeemed is wrong.
> And to top it off, the entire 10K is shown as interest in the reports
> section.
> How should this be entered correctly?

12-03-2006, 11:53 PM

Two answers -
the first is that you want to "sell" the tbill - not redeem it. Selling it
at par (100) will generate the gain you're looking for.
the second is that there still are problems -
http://support.microsoft.com/default...b;en-us;823031 documents the
problem, but be aware that the solution I suggested there doesn't work very
well.

--
Michael Gordon

"alocksley" <lahnkv[at]hotmail.com> wrote in message
news:rSGch.41$Ov5.36[at]newsfe10.lga...
- quote -

> MS Money 2005
> I record the purchase of a 10K 6-mo T-Bill with the number of shares
> (10000) and the auction price (say 97.55). as a buy with a quantity and
> price but no accrued interest.
> At maturity I try to "redeem CD/Bond" but it does not handle the
> "accumulated interest" properly;
> If I put in the amount + interest there's interest left in the register.
> If I record only the total amount I get at maturity (10000*.9755 +
> interest) = 10000, the total redeemed is wrong.
> And to top it off, the entire 10K is shown as interest in the reports
> section.
> How should this be entered correctly?

#-1 12-03-2006, 07:56 PM

MS Money 2005
I record the purchase of a 10K 6-mo T-Bill with the number of shares (10000)
and the auction price (say 97.55). as a buy with a quantity and price but no
accrued interest.

At maturity I try to "redeem CD/Bond" but it does not handle the
"accumulated interest" properly;

If I put in the amount + interest there's interest left in the register. If
I record only the total amount I get at maturity (10000*.9755 + interest) =
10000, the total redeemed is wrong.

And to top it off, the entire 10K is shown as interest in the reports
section.

How should this be entered correctly?

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