391 – Income from Other Operations

Net Worth

Synopsis

Account 391

Debits

Credits

  1. Expenses and losses resulting from the association with other ventures and businesses which are not directly related to the SOA Retailer.

  1. Income earned from the association with other ventures and businesses which are not directly related to the SOA Retailer.

 

Remarks:

The balance should consist of the net result of all income, losses and expenses associated with the Retailer’s involvement with other ventures and businesses not directly related to the SOA Retailer business entity.

 

This account is provided in order to record the net income from other company-owned operations not directly related to the auto dealership operation and to maintain a clear picture of the SOA Retailer day-to-day operational results separate from any other associated ventures.

 

Secure advice from competent tax counsel regarding the accounting and reporting requirements for the dealership and these ventures or businesses.

 

Only use this account to represent income statement activity related to other vehicle franchises owned by the corporation holding the Subaru franchise, IF they are in a separate building and under a separate roof.  Otherwise, if the other vehicle franchises are in the same building/roof, then that activity must be reported in the income statement under “New Vehicle Other”.

 

The net amount of all balance sheet accounts relating to the income shown in Account 391 must be shown in Account 297, Investments and Advances - Other Operations and should not be co-mingled with the dealership’s other balance sheet accounts.

Note: