Series 27: Aggregate Debit Items

Aggregate Debit Items

A debit item is an accounting entry on a company’s balance sheet that either increases assets or decreases liabilities. For purposes of computing net capital using the alternative method, broker-dealers must include these items.

Debit balances in customers’ cash and margin accounts. A debit balance is money that a customer borrows from a broker-dealer. The amount of the debit balance included in the calculation of aggregate debit items is subject to these exclusions and adjustments:

• • Unsecured debit balances and accounts doubtful of collection are excluded.
• • Cash and margin accounts of affiliated persons and relatives of the firm’s principals are excluded.
• • If a specific security being held as collateral for a customer’s margin account exceeds 15% of the aggregate value of all the securities used as collateral