Definition

Debit investments

Debit investments are investments in government and corporation bonds. In accounting for debt investments, companies make entries to record (1) the acquisition, (2) the interest revenue, and (3) the sale.

Companies record investments in debt securities when they purchase bonds, receive or accrue interest, and sell the bonds. They report gains or losses on the sale of bonds in the “Other revenues and gains” or “other expenses and losses” sections of the income statement.

Share it:  Cite

More from this Section

  • Capital stock
    Capital stock consists of preferred and common stock. Preferred stock appears before common ...
  • Accountancy
    Accountancy involves the preparation of the final accounts to show the result ...
  • Authorized stock
    Authorized stock refers to the amount of stock that a corporation is authorized to sell ...
  • Cumulative dividend
    Cumulative dividend is a feature of preferred stock entitling the stockholder to receive ...
  • Error of omission
    An error of omission is one where a transaction has not been recorded in the books ...