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Give an accounting treatment for
Investment made worth 100 today,after 6months its value is
60.

Answers were Sorted based on User's Feedback



Give an accounting treatment for Investment made worth 100 today,after 6months its value is 60...

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

Give an accounting treatment for Investment made worth 100 today,after 6months its value is 60...

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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