10424 ACCOUNT NO. 2013 - PREMIUM ON SECURITIES
(Revised 5/87)
Normal Balance: Debit
Purpose: This account shows the unamortized premium on securities purchased at more than par value. Premium is amortized during the expected holding period or the securities using the "interest method" which yields an equal periodic rate of interest.
Subsidiaries: Investments Ledger
Normal Entries:
| Entry No. |
Debits |
Entry No. |
Credits |
| 33. Investment securities are purchased. |
34. Investment securities mature or are sold.
35. Interest is received on investment securities.
A-5. Interest is accrued on investments. |
