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Basic Accounting question

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

  1. islandgirl

    islandgirl Well-Known Member

    Joined:
    18th Sep, 2006
    Posts:
    118
    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
     
  2. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    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
     
  3. islandgirl

    islandgirl Well-Known Member

    Joined:
    18th Sep, 2006
    Posts:
    118
    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