ACCOUNT NUMBER 2014, DISCOUNT ON SECURITIES - 10425
(Revised: 05/1987)
Normal Balance: Credit
Purpose: This account shows the unamortized discount on securities purchased at less than par value. Discount is amortized during the expected holding period of the securities using the "interest method" which yields an equal periodic rate of interest.
Subsidiaries: Investments Ledger
Normal Entries:
|
Entry Number |
Debits |
Entry Number |
Credits |
|
34. |
Investments securities mature or are sold. |
33. |
Investment securities are purchased. |
|
35. |
Interest is received on investment securities |
|
|
|
A-5 |
Interest is accrued on investments |
|
|
Revisions
No Revisions for this item.
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