Basic Accounting question

Discussion in 'Accounting & Tax' started by islandgirl__, 11th Apr, 2007.

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  1. islandgirl__

    islandgirl__ Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    103
    Location:
    Middle of beautiful Moreton Bay, Qld
    Can I ask a really dumb basic question. When I purchase income units in a HDT what is my journal. Credit bank account, debit ?? is it owners equity? Do I distinguish between income units and discretionary units in separate accounts?

    Any help would be greatly appreciated.

    Thanks
     
    islandgirl__, 11th Apr, 2007
    #1
  2. NickM

    NickM Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    299
    Location:
    Sydney
    Hi Island girl
    the more detail , the better.

    Units should be in the equity section

    if you purchased an IP for say $300K the entry would be

    Dr IP at cost (asset acct) $300K
    Cr SPec Inc Units (equity acct) $300K

    If you just deposited cash at bank then the debit would be to the bank

    regards
    NickM
     
    NickM, 12th Apr, 2007
    #2
  3. islandgirl__

    islandgirl__ Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    103
    Location:
    Middle of beautiful Moreton Bay, Qld
    Thanks NickM

    I though it was something like that but I didn't want to muck up my first transactions!! Thanks for the help
     
    islandgirl__, 13th Apr, 2007
    #3