The journal entry for investment is usually entered as a credit. On the other hand, the journal entry for the loss incurred is usually a debit.
Today, I made a new investment in a diversified mutual fund to further enhance my investment portfolio. This decision aligns with my long-term financial goals and risk tolerance. I will continue to monitor the performance of this investment regularly to ensure it remains in line with my objectives.
debit investment
credit cash
equity
debit investment accountcredit cash / bank
debit cashcredit interest on investment
example suman moters of rs 10000 is write off then what is the entry
no journal entry required
Debit interest receivableCredit interest income
Dr Investment Cr Provision for contingent consideration
[Debit] Investment in company 30000 [Credit] Cash 30000
Debit investment in other companyCredit cash / bank
Compound journal entry is that entry which records more than one business transaction in one single journal entry.
Dr. Unrealized loss on investment in Company B (P&L) Cr. Investment in Company B (B/S)
There is no journal entry for forecasting sales rather journal entry is made for actual sales when they occur.