Accounts of income are accounts accounting aimed at recording all the elements that have to do with sales or other income.
Easier and simpler, the income accounts are numbers or names that are assigned to certain operations of the company to account for them and, therefore, register them. For example, let’s see the account called ‘Merchandise sales’. Suppose there is a company X that is dedicated to the production of tables. A famous brand of hypermarkets decides to buy from the company X tables worth 150,000 dollars. Those $ 150,000 will be added to the ‘Merchandise sales’ income account. In the event that the hypermarket brand decides to pay at the time of purchase, those $ 150,000 will enter the company’s cash (current asset).
Another illustrative example could be that of ‘Positive exchange differences’. Company X also sells in countries with different currencies. Thus, it also admits payment in the other currency. When the end of the year comes, the currency has been able to appreciate or depreciate. In those cases in which the currency is appreciated, that is, it is worth more, the company will record an increase in the account of said income account, ‘Positive exchange differences’.
Income accounts are added at the end of each period to the income statement. So everything, everything that involves an entry of money or revaluation, is recorded in income accounts.
Main income accounts
For ease of explanation, we will separate the income accounts into three parts: operating income, financial income and exceptional income.
Operating income
- Sale
- Variation of existences
- Work done by the company
- Grants, donations and legacies
- Other income
Financial income
- Positive exchange differences
- Income from equity interests
- Benefits for valuation of financial instruments at fair value
- Income from debt securities
- Benefits in participation and debt securities
- Credit Income
Exceptional income
- Benefits from intangible assets
- Benefits from property, plant and equipment
- Exceptional income
- Benefits from non-current assets and exceptional expenses
