260 Securities

Current Assets

Other

Synopsis

Account 260

Debits

Credits

  1. The cost, including brokerage fees, of securities purchased.

  2. The cost or market value, whichever is lower, of securities accepted in trade.

  1. The cost of securities sold.

  2. The disposal of worthless securities.

 

 

Remarks:

This account is for stocks, bonds, and other securities that are readily convertible to cash.

 

Investments in subsidiaries or affiliates should not be included in this account.  Such investments should be charged to Other Non-Automotive Assets (Account 296).

 

Supporting information on all transactions should be maintained.  This includes date acquired, cost, complete description, date sold, proceeds, and gain or loss on disposal.

 

Cost represents the total amount paid, including commissions, taxes and other fees.

 

Proceeds represent the net amount received that is the gross amount of the sale less commissions, taxes, transfer cost, and other fees.

 

A schedule of income should be maintained for each marketable security held.

 

All interest and dividends earned should be credited to Additions to Income – Interest Earned (Account 801).

 

Profits resulting from a sale should be credited to Additions to Income – Other, (Account 805); losses should be debited to Deductions to Income – Other (Account 855).

Note: