Entry for loss on investment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2011 Dear Sir,

We are Pvt. Ltd co. we did investment of Rs.7500000/- in Pvt Ltd co.during 2006-07 now in December 2012 we sold the share and we received Rs825000/- so what will be entry for the same?

Thanks in advance.....

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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12 May 2012 Bank A/c Dr
Loss on Sale of Investment A/c Dr
To Investment A/c

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2012 Thanks Sir, But Loss on Investment goes under which head??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 May 2012 Indirect expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2012 Sir, but if i put loss on investment under indirect expenses then my business profit come down.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 May 2012 In books of accounts the profit will be less.

While computing business income for income tax purpose, the loss will be added back (disallowed as covered under capital gains)

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Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2012 Thanks Sir........

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 May 2012 You are welcome. You should use the thanks button to convey your thanks.

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