Debit loss account
Credit cash / bank
Dr. Unrealized loss on investment in Company B (P&L) Cr. Investment in Company B (B/S)
Is an unrealized loss reported to IRS?
loss by theft A/c to purchases
debit loss by firecredit purchases
it s transfer to profit and loss account.
Dr. Unrealized loss on investment in Company B (P&L) Cr. Investment in Company B (B/S)
Asset Account (debit) Unrealized Gain/Loss on Investment (credit) This journal entry is increasing your asset but at the same time putting the funds it has been increased into a "holding" account until the gains/losses can be realized. When the asset matures or sells you make an entry to realize the gain/loss which have now become taxable income. Unrealized Gain/Loss on Investment (debit) Interest Income; Realized Gain/Loss (credit) You will also need an JE to account for what is happening with the asset. Cash (debit) (unless you are going to roll over the asset. If that's the case keep amount rolling over in asset account.) Asset Account (credit)
Is an unrealized loss reported to IRS?
loss by theft A/c to purchases
Debit cash / bankdebit loss on saleCredit fixed asset
it s transfer to profit and loss account.
debit loss by firecredit purchases
debit loss by firecredit goods inventory
[Debit] Loss on sale of equipment xxxx [Credit] Asset account xxxx
Reserves always created from profit. Therefore the Journal entry will be for creating reserves Dr Profit & Loss A/c CR Reserve A/c
debit loss of assetcredit fixed asset
Debit profit and loss accountCredit owners capital