A Return of capital refers to payments back to shareholders, partners, or unitholders that exceed the growth (net income/taxable income) of a business or investment. Unlike a dividend or bonus share issue, which reflects a gain or loss on an investment, a return of capital is a return of some or all of the initial investment, and reduces the investment. A return of capital shrinks the equity of the company, transferring value from the company back to its owners.
To record a return of capital, click CORPORATE ACTIONS on the ASSETS menu, then RETURN OF CAPITAL.
Enter the Record Date by selecting from the popup calendar.
Select the Asset from the assets list.
Mclowd displays the Assets Shares Data (purchase date, CGT date, volume and price per unit.)
NOTE: The below screen is for example purposes only. It is not intended to suggest that ANZ made a return of capital on that date.
Enter the Posting Date by selection from the popup calendar.
Enter the total Received Amount.
Mclowd will calculate and display the Per unit return on capital.
Select the Bank Account into which the proceeds were/will be deposited.