We have invested in a fund for several years, recently we received a cheque with a note said it's rebate to us. How to record the rebate? Appreciate your help!
what would be the entries when receive rebate after investing in a fund?
Answers
Depending on the contractual agreement you are having with the Fund, I would treat it either as a dividend or an interest income. It should stay in your P&L in the category of "investment incomes" or as an extraordinary income item, depending on the materiality of the money you received compared to the size of the company.
When you are discussing a rebate from a fund, the rebate is a refund to you of part of the charge you pay. The refund is paid to you by the fund manager, Usually this is done by adding extra fund units to your account. If so Dr Fund Account and Credit Fund Management Fee Expense
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