Prop Partial Sales: Sale Proceeds Do Not Rewrite the Entry Basis
After a partial sale, realised proceeds and the remaining position are different records. A high sale price should not be inserted as a new entry price for units that were not sold. State the accounting convention before comparing an account result.
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Preserve the original supplied inventory
In a fictional weighted-average teaching ledger, four units enter at 100 and two at 110. Total quantity is six and gross entry cost 620, giving average entry 103.3333. Fees are excluded from this first calculation and must be supplied separately.
Now two units sell at 120. Gross proceeds are 240, while their entry basis under the stated average convention is approximately 206.6667. The difference is approximately 33.3333 before costs. The remaining four units retain average entry 103.3333 in this model.
Distinguish cash recovery from retained basis
The arithmetic (620 − 240)/4 = 95 measures net original cash outlay remaining after the sale per retained unit. It is not the same as the model’s average entry. Both numbers can be recorded if their labels and assumptions remain explicit.
An actual product or reporting regime may use another basis convention. This page does not choose a tax method or assert how a particular platform accounts for inventory. Preserve the provider’s actual statement before translating a teaching ledger into an account review.
| Record | Calculation | Result |
|---|---|---|
| Initial gross entry | 4 × 100 + 2 × 110 | 620 for 6 units |
| Average entry | 620/6 | ≈ 103.3333 |
| Partial gross proceeds | 2 × 120 | 240 |
| Retained entry / net cash metric | 103.3333 / (620−240)/4 | Different metrics:103.3333 and 95 |
Bring costs and account scope back in
The existing partial-sale resource on this site remains the companion for basis and proceeds. A fee paid in another asset requires a separate movement and explicit valuation. A realised component also cannot describe the floating result on the remaining units.
Use the optional sponsored HashHedge link to review current programme rules and supported products. The example does not establish spot-inventory availability there, an actual sale or a successful evaluation. It supplies a bookkeeping distinction without placing an order.
Sources and rule dates
- HashHedge: challenge types
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established. - HashHedge: daily loss calculation
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established. - HashHedge: terms and conditions
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established.