About this tool
When an investor subscribes to or redeems from an open-ended fund, units are issued or cancelled at the dealing net asset value (NAV) per unit. The cash movement, any entry or exit fee, and the change in net assets attributable to unitholders all need to be booked correctly.
This generator prices the transaction at the dealing NAV, applies an entry or exit fee, and produces the subscription (units issued) or redemption (units cancelled) journal entry — together with the unit count and the impact on the unitholders' balance.
How to use it
- Choose subscription or redemption and enter the fund, investor and dealing NAV per unit.
- Enter the subscription amount (or units redeemed) and any entry or exit fee percentage.
- Read the units, capital and net cash, then download the journal entry as a print-ready PDF.
Frequently asked questions
How are fund units priced on subscription and redemption?
Units are priced at the dealing NAV per unit for the relevant dealing day. On subscription, units issued equal the net amount invested (after any entry fee) divided by the NAV per unit. On redemption, the gross amount equals units redeemed multiplied by the NAV per unit, less any exit fee.
What is the journal entry for a fund subscription?
Debit cash for the gross amount received, credit net assets attributable to unitholders for the amount applied to NAV (units issued multiplied by NAV), and credit subscription/entry fee income for any sales charge retained by the fund.
What is the journal entry for a redemption?
Debit net assets attributable to unitholders for the units cancelled multiplied by NAV, credit cash or redemptions payable for the net amount paid to the investor, and credit redemption/exit fee income for any exit charge.
Are unitholders' interests equity or a liability?
Where a fund's units are puttable — redeemable at the holder's option — the unitholders' interest is generally presented as a financial liability under IAS 32, unless it meets the limited puttable-instruments exception to be classified as equity. Subscriptions and redemptions then move that liability balance.