Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Company that has investment (capital) income only

Bottom of Page

1 to 3 of 3

  1.  
    • CommentAuthorsrschue
    • CommentTimeMay 8th 2007
     
    I am working on a company book's that are fairly new. They do not have any income other then investment income. All investment monies have been put to the capital account on the balance sheet. I need advise on how this should appear. The P&L shows no income just expenses which obviously gives a net income of a negative number. How should a company that is currently running on investment income show on the financials?
    • CommentAuthoraakbar
    • CommentTimeMay 9th 2007
     
    There is Accounting method, Investment Accounting so if you refer books on that u will get good idea.
    • CommentAuthorabril
    • CommentTimeMay 9th 2007
     
    the company isn't earning yet. net income of a negative number is actually a LOSS. apparantly they have investments so its normal that they recieve investment income. all income or gain on investments will go to either retained earnings account or Additional-paid-in-capital account which is a capital account. the company's finacial statements are shown in the same way whether or not they profit except for liquidation purposes.

    hope that helps. Goodluck :)

1 to 3 of 3

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?