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Post Info TOPIC: Sale of Investment in Ltd Co and realised loss Double Entries
Caspar


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Sale of Investment in Ltd Co and realised loss Double Entries
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Hi I wonder if anyone knows the entries for this transaction as I haven't done one of these before:

Other Investment B/S (valued at £20,000 in the accounts) Sold for £8,000 to a related party (a valuation was done on the day of sale and it was shown to be now only worth this lower figure, due to the downturn in trade due to Covid which had an affect on the investment value).  Therefore creating a non-trading Capital loss.

Would the double entry be

 

Cr Other Investment Disposals

Dr Bank

Dr Loss on other investment disposals (in the P & L)

Or is it added directly instead to:

Dr Revaluation Reserve on B/S (with it being a non-trading loss)

 

Many Thanks

Caspar

 

 



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