Investment account - property

Accountancy

does the property held for investment purposes is recorded at market value or cost whichever is lower if yes then if the market price is lower the loss is tranfer to which account (revaluation, capital reserve p&l a/c etc) ?

Atharv Sankliya

CA Final

★ 3K+

14-Jan-23 15:11

525

Answers (3)

If investment for short term, it is to be transferred to P&L a/c. For long term, and permanent decline in value,it should be written off from the asset

Shankari C

CA Inter

★ 12K+

14-Jan-23 16:54

Shankari C

If investment for short term, it is to be transferred to P&L a/c. For long term, and permanent decline in value,it should be written off from the asset

What will be the entry for writte off of property due to permanent decline

Thread Starter

Atharv Sankliya

CA Final

★ 3K+

14-Jan-23 19:01

As per as 13 - INvestment Properties are accounted for as long term investments. Write off due to permanent decline Dr. P&L Cr. INvestment Property

CA Suraj Lakhotia

Admin

18-Jan-23 10:44