Give an accounting treatment for
Investment made worth 100 today,after 6months its value is
60.
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Answer / badari
When we purchase the investments the entry will be
Investments A/C.......Dr 100
To Bank A/C........... 100
After six months the value of investment if Rs 60 entry will be
Bank A/C................Dr 60
P&L A/C.................Dr 40
To Investment A/c..............100
| Is This Answer Correct ? | 15 Yes | 0 No |
Answer / mallikarjuna
i invested to day 100 Rs.
After six months it's face value 60 Rs only
So we have loss 40 Rs
In Accounting Treatment at the time of investment we entered
investment transaction in journal voucher is
Cash a/c dr 100
To Capital a/c 100
After six months we will get capital loss, journal treatment is
cash a/c dr 60(present business value)
P/l alc 40 ( capital loss)
To capital a/c 100
in the balance sheet
Assets Liabilities
Capital 100 cash in hand 60
(-)p/L a/c 40
(Balance sheet tally) 60 60
| Is This Answer Correct ? | 2 Yes | 12 No |
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