Interest on warrant

At the end of the financial year, you may receive correspondence indicating you are entitled to certain “tax” deductions relating to the investment warrant you have. These expenses usually relate to interest and borrowing costs which may be reflected in the original purchase of the warrants.

As there is no actual interest physically paid, there is a need to use a journal entry which does not impact on the profit of the fund and also creates the interest deduction for the fund.

The journal entry would be similar to the following example:

DR 5-1050 Interest expenses within Australia
CR 4-1271 Non Taxable Income

To add the journal, choose More from the main menu and then choose Journal Entries

The journal would be as follows: