Interest on margin

Saurabh Malpani (CA Final) (514 Points)

03 June 2013  

i was doing audit of a share broker company in which some of the interest income from margin was present. It was shown as other income in the  previous  year.  Since the interest is earned from depositing the margin to the exchange which is a part of operation of the  company. Can i show the interest as other operating income? if yes please clarify me.