Question

Is interest on investment recorded in the income and expenditure account?

Answer 1

Premium or interest on General Fund Investments is normally added to the General Fund on the Liabilities side of the Balance Sheet. In any case, in case there is no General Fund isn’t given (or shows up on the Liabilities side), then, at that point such interest would be displayed on the credit side (Income side) of the Income and Expenditure Account.

Also see:

• Income and Expenditure Account
• Difference Between Capital Expenditure and Revenue Expenditure
• Classification of Expenditure

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