valuation of Stock (Shares) & Accrued Interest

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chintan sodha (Querist)
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25 March 2009 Dear Sir,

If we want to show share stock (business) at market value at 31st March than what type of entry is required to be passed at the end to show unrealized gain or unrealized loss for that. And what entry and adjustment is made when actually sold the same?

Secondly for the fixed deposit that has been matured in next year if we want to make an entry for accrued interest than tds detail is required or we have to pass the entries for interest income only?

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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25 March 2009 answered.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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25 March 2009 1.There is no need to book unrealized gain or loss as it not permitted by AS-1.
Even then the entries are
1(a).For Gain
Invst in Shares A/c............Dr
To Unrealized Gain A/c
(b)Unrealized gain A/c.........Dr
To P&L A/c
2(a)For Loss
Unrealized loss A/c.........dr
To Invst. in Shares a/c
(b)P&L A/c......................Dr
To Unrealized Loss a/c.

2.treatment of fixed deposit

Fixed deposit a/c..........dr
TDS Receivable(Interest)...dr
To Interest Accrued A/c

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