/trade-accounting

name: trade-accounting
description: Double-entry bookkeeping for trading operations with ledger management, P&L statements, balance sheets, and cash flow reporting
license: MIT
metadata:
  author: agipro
  version: "0.1.0"
  category: trading

Trade Accounting

Run your trading operation like a business. Every SOL spent, every token acquired, every fee paid, every gain realized — tracked with double-entry bookkeeping so your books always balance. Whether you trade through a personal wallet or an LLC, proper accounting turns chaos into clarity.

**Core principle**: Every transaction touches at least two accounts. Buy a token? Cash goes down, token holdings go up — by the same amount. This double-entry constraint catches errors automatically: if debits do not equal credits, something is wrong.

Why Traders Need Accounting

Most traders track P&L loosely — "I started with 50 SOL and now I have 62 SOL." That tells you nothing about:

• How much came from realized trades vs unrealized positions
• What you paid in cumulative fees (gas, priority fees, swap fees)
• Whether your staking and LP income covers your operating costs
• Your actual cost basis for each holding (critical for taxes)
• Cash flow timing — are you profitable but illiquid?

Proper accounting answers all of these. It also separates **trading P&L** (mark-to-market, useful for strategy evaluation) from **tax P&L** (realized gains using a specific cost basis method, required for compliance).

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Account Types

A trading operation uses four account categories following standard accounting:

| Category | Normal Balance | Examples | |----------|---------------|----------| | **Assets** | Debit | Cash (SOL/USDC), token holdings, LP positions, staking deposits, receivables | | **Liabilities** | Credit | Margin borrowing, accrued taxes payable | | **Income** | Credit | Realized trading gains, staking rewards, airdrop income, LP fee income | | **Expenses** | Debit | Trading fees, gas/priority fees, subscription costs, data feeds | | **Equity** | Credit | Owner capital contributions, retained earnings, withdrawals (contra) |

Chart of Accounts

See `references/planned_features.md` for a full chart of accounts. A minimal setup:

1000  Assets
  1010  Cash – SOL
  1020  Cash – USDC
  1100  Token Holdings (one sub-account per token)
  1200  LP Positions
  1300  Staking Deposits

3000  Income
  3010  Realized Trading Gains
  3020  Staking Rewards
  3030  Airdrop Income
  3040  LP Fee Income

4000  Expenses
  4010  Trading Fees (DEX swap fees)
  4020  Gas & Priority Fees
  4030  Slippage Cost

5000  Equity
  5010  Owner Capital
  5020  Retained Earnings
  5030  Owner Withdrawals (contra-equity)

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Double-Entry Bookkeeping

Every transaction records equal debits and credits. Debits increase asset and expense accounts; credits increase liability, income, and equity accounts.

Entry Examples

**Buy 1000 BONK for 0.5 SOL (0.001 SOL gas fee):**

| Account | Debit | Credit | |---------|-------|--------| | Token Holdings – BONK | 0.501 SOL | | | Cash – SOL | | 0.501 SOL |

Or with the fee broken out explicitly:

| Account | Debit | Credit | |---------|-------|--------| | Token Holdings – BONK | 0.5 SOL | | | Gas & Priority Fees | 0.001 SOL | | | Cash – SOL | | 0.501 SOL |

**Sell 1000 BONK for 0.8 SOL (cost basis was 0.5 SOL, 0.001 SOL gas):**

| Account | Debit | Credit | |---------|-------|--------| | Cash – SOL | 0.799 SOL | | | Gas & Priority Fees | 0.001 SOL | | | Token Holdings – BONK | | 0.5 SOL | | Realized Trading Gains | | 0.3 SOL |

**Receive staking rewards of 0.05 SOL:**

| Account | Debit | Credit | |---------|-------|--------| | Cash – SOL | 0.05 SOL | | | Staking Rewards | | 0.05 SOL |

**Receive airdrop of 5000 JUP (valued at 2.1 SOL at receipt):**

| Account | Debit | Credit | |---------|-------|--------| | Token Holdings – JUP | 2.1 SOL | | | Airdrop Income | | 2.1 SOL |

**Collect LP fees of 0.03 SOL:**

| Account | Debit | Credit | |---------|-------|--------| | Cash – SOL | 0.03 SOL | | | LP Fee Income | | 0.03 SOL |

**Partial close — sell half a position:**

If you hold 2000 BONK at cost basis 1.0 SOL and sell 1000 for 0.7 SOL:

| Account | Debit | Credit | |---------|-------|--------| | Cash – SOL | 0.699 SOL | | | Gas & Priority Fees | 0.001 SOL | | | Token Holdings – BONK | | 0.5 SOL | | Realized Trading Gains | | 0.2 SOL |

The cost basis of the sold portion (0.5 SOL = half of 1.0 SOL) is removed from the asset account.

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Transaction Types

The ledger handles these trading flows:

| Flow | Accounts Touched | |------|-----------------| | Fund account | Cash (debit), Owner Capital (credit) | | Withdraw funds | Owner Withdrawals (debit), Cash (credit) | | Buy token | Token Holdings (debit), Cash (credit), Gas Expense (debit) | | Sell token | Cash (debit), Token Holdings (credit), Realized Gains (credit or debit for loss), Gas Expense (debit) | | Partial close | Same as sell, pro-rated cost basis | | Swap token for token | Token B (debit), Token A (credit), fees | | Staking deposit | Staking Deposits (debit), Cash (credit) | | Staking reward | Cash (debit), Staking Rewards (credit) | | Airdrop received | Token Holdings (debit), Airdrop Income (credit) | | LP fee collected | Cash (debit), LP Fee Income (credit) | | Trading fee | Trading Fees (debit), Cash (credit) | | Gas/priority fee | Gas & Priority Fees (debit), Cash (credit) |

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Reports

Profit & Loss Statement

Shows income minus expenses for a period:

═══════════════════════════════════════════
  P&L Statement: 2026-02-01 to 2026-02-28
═══════════════════════════════════════════
INCOME
  Realized Trading Gains ........  4.200 SOL
  Staking Rewards ...............  0.150 SOL
  Airdrop Income ................  2.100 SOL
  LP Fee Income .................  0.090 SOL
                                  ─────────
  Total Income                     6.540 SOL

EXPENSES
  Trading Fees ..................  0.120 SOL
  Gas &