[GNC] How-to question: CD Interest payments deposited in

David Cousens davidcousens at bigpond.com
Tue Feb 19 06:23:19 EST 2019


David,

Why should the interest have any connection to the CD account? This would
only be applicable if there was a dividend reinvestment for example as with
share/stocks. This is the only time a dividend would increase your stock
assets rather than your cash assets.

For a cash deposit you either get the interest paid to you according to the
contracted schedule or the interest is accumulated into the deposit. The
latter is rare with cash deposits. Cash deposits are generally with a bank
or similar institution but if they were made through a broker, then a
brokerage account if the interest was paid to that account instead of a
checking account would be an equally valid target for the debit. 

Art specifically mentioned that the interest payments were made to his
checking account not the brokerage account. However if the investment was
not made via a broker, I would not record it under a brokerage account as
this is meant to record money you have deposited with the broker for the
purpose of trading through that broker.

If you need to identify where the interest is coming from then a subaccount
of a general income interest account will provide that identification. In
the case of dividends, if you really need to track it to each stock then you
could equally have an income:investments subaccount for each stock.

Accrued dividends where the dividend has been declared by the company, but
not yet paid, you could treat by crediting an asset:investment:declared
dividends account  and debiting an appropriate income dividend account when
it is declared. When it is paid you would then credit the
asset:investment:declared dividends account and debit the appropriate
asset:investment:brokerage or asset :bank account depending on how it was
paid. I.e you treat it in a manner similar to an account receivable.

David Cousens



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David Cousens
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