10425 ACCOUNT NO. 2014 - DISCOUNT ON SECURITIES
(Revised 5/87)
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 No. |
Debits |
Entry No. |
Credits |
34. Investments securities mature or are sold.
35. Interest is received on investment securities.
A-5. Interest is accrued on investments. |
33. Investment securities are purchased. |
