Enter slips, reconcile to the GL, carry to T2 schedules

Enable the worksheet

From Worksheets, check Investment income reconciliation. This worksheet is never auto-suggested from the TB (presence of investment income isn't reliably detectable). Enable it whenever a client holds investments.

Slips tab : add and fill box by box

At the top of the Slips tab, choose the type then click Add the slip. Four types :

T5 / RL-3T3 / RL-16T5008Other / untracked

Enter the issuer (e.g. « Canoe », « Fidelity », « BMO Nesbitt Burns ») and the reference (account number). Then fill box by box as on the client's paper or PDF slip.

For T5008 (dispositions), input is specific : Date (14), Code (15), Quantity (16), Security (17), Cost/ACB (20), Proceeds (21), and Gain is auto-computed. Click Add a disposition to enter several securities on the same slip.

Summary tab : read the totals

The summary groups automatically by issuer and by income type :

Eligible dividendsOrdinary dividendsInterestCapital gainOther incomeCapital gain dividendsForeign incomeForeign taxACB adjustment

It's a sanity check : do the amounts look like last year's ? A missing slip jumps out.

Tax tab : carry to T2 schedules

Ledger routes income to the right T2 schedules automatically :

• Schedule 3 : Dividends received.
• Schedule 6 : Capital gains (losses).
• Schedule 7 (Canadian) : Investment income (Canadian).
• Schedule 7 (foreign) : Investment income (foreign).
• Schedule 21 : Foreign tax credit.
• Outside schedules : ACB adjustments (no schedule, they adjust cost basis).

Cost reconciliation tab : track ACB

One row per investment account on the GL. Ledger starts from the TB opening balance, applies received interest (+), financial fees (−), and adjustments (±), then compares to the firm's statement. Gap should trend to 0. If it persists, look for an ACB adjustment (return of capital, non-income distribution) to add on the slips.

A Help · ACB adjustment (box 42) link (on the Tax tab, next to the T2 schedule carry) opens the full tax reminder : T3 box 42 (RL-16 box M) is a return of capital, never income. It is not added back to the current year's capital gain : it reduces the ACB (paragraph 53(2)(h) ITA) and the effect lands on disposition, on Schedule 6. One exception : an ACB that goes negative creates an immediate deemed capital gain (subsection 40(3) ITA). The dialog also covers reinvested distributions (box 21, which increase the ACB) and links to CRA guides T4037 and T4013.

GL reconciliation (in the same tab)

At the bottom of Cost reconciliation, section GL reconciliation : pick your investment income accounts from the TB (interest, dividends received, gains…). Ledger compares their adjusted balance to the total income from slips, and shows the gap. Zero means your entry matches the client's GL. Otherwise, there's a missing entry on the GL or a slip to add.

Entry tab : adjusting entry

Ledger groups slips into two credit accounts : Investment income (interest, dividends received, other income, foreign income, foreign tax) and Capital gain (gain in capital + capital gain dividends).

Pick an offset account (debit) (typically the investment account or a cash account if received). The ACB adjustment is excluded from the entry, it modifies the cost, not income.

Click Submit to adjusting entries. Default description : « Investment income, slips (via worksheet) ».