Other Income

Other Income groups the earnings that are not the company's main trade: bank interest, rent from a spare flat, grants released, gains on selling an asset, exchange gains, investment gains and the profit of a unit being closed. It posts nothing itself. Separating these from Revenue from Contracts with Customers keeps the gross profit honest and shows how much profit came from the real business. Several of these items are taxed differently: bank interest arrives net of TDS that the company can set off, and a gain on a vehicle sale is taxed under the asset rules. The IRD's annual return has separate lines for business income and other income, so the split must be kept in the ledger.

Other Income = Interest Income + Rental Income + Government Grant Income + Gain on Disposal of Assets + other gain ledgers

1. 01Go to Accounts Setup > Chart of Accounts, expand Income, then Other Income.
2. 02Post bank interest, rent or gains with Invoicing > Journal Entry to the specific ledger beneath.
3. 03Open Financial Reports > Profit and Loss Statement and read the group total below core revenue.
4. 04Use the breakdown to fill the other income schedule of the annual tax return.

Do not post here. Pick Interest Income, Rental Income or another child on your Journal Entry or Payment Entry.

Bank interest of Rs 12,000 credited in Poush sits under Other Income, not under sales.