How can we treat the permanent diminution in the value of a investment which is not brought into books.?
The investment made by a company in partnership firm, turns out to be a loss and thus shows a debit balance in book of the firm. So far this has not been brought into the books of company. Now during audit finalisation , this loss needs to be booked.But the face value of investment is there in the books of the company. Now when we recognize this loss in Profit & loss account as per AS 13, what should be the entry?
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