Accounting treatment

Prov for loss on investments A/c ( debit to P/L A/c)

To   Investments A/c (Reduced fron Investments)

ASHISH IS RITE

AN ALTERNATIVE TO THAT CAN BE

A) LOSS ON DIMMUNITION OF INVESTMENT A/C..............DR

                              TO PROVISION FOR LOSS ON DIMMUNITION OF INVESTMENT

B) PROFIT/LOSS A/C...........................DR

                         TO LOSS ON DIMMUNITION OF INVESTMENT A/C

AND

PROVISION FOR LOSS ON DIMMUNITION OF INVESTMENT A/C CAN BE SHOWN AS DEDUCTION FROM INVESTMENT IN THE BALANCE SHEET...

As per AS 13 the increase/decrease in the value of investment is credited/debited to Profit and Loss Account.  No point in creating and carrying provision for diminution in Balance Sheet.  For this only a simple entry is sufficient like: Profit & Loss A/c Dr. to Investment A/c.

Hello Jag Bhai, Amir Bhai & Ashish Bhai...

I have reduction in Investment by 1,98,000 & P&L has only Auidt fees of Rs. 1000.

Now is it possible, if I dont want to show the same in P&L A/c.

How can i route the reduction in investments without involving Profit & Loss Account OR by note debiting P&L Account by Rs. 1,98,000, as ultimately its Reserves & Surplus gone get impacted with this amount (1,99,000 = Inv Reduced 1,98,000 + Audit Fees 1,000)

Since I dont want to show the reduced value in P&L A/c.

Can you help , in that case what entry to pass and whether any disclosure is required in Notes to Accounts.