Gain on Investments Sale

Code: 4832
👁 Views: 102

Account Information

Financial Statement Income Statement
Normal Balance Credit

Definition

Gains realized when investments are sold above their cost

Common Journal Entries

Gain on sale of shares

Dr. Bank Account
Cr. Short Term Investments
Cr. Gain on Investments Sale

Gain on sale of bonds

Dr. Bank Account
Cr. Government Bonds
Cr. Gain on Investments Sale

Transfer investment gains to income

Dr. Gain on Investments Sale
Cr. Income Summary

Gain on liquidation of mutual fund

Dr. Bank Account
Cr. Mutual Funds
Cr. Gain on Investments Sale

Gain on sale of shares

Dr. Bank Account
Cr. Short Term Investments
Cr. Gain on Investments Sale

Gain on sale of bonds

Dr. Bank Account
Cr. Government Bonds
Cr. Gain on Investments Sale

Transfer investment gains to income

Dr. Gain on Investments Sale
Cr. Income Summary

Gain on liquidation of mutual fund

Dr. Bank Account
Cr. Mutual Funds
Cr. Gain on Investments Sale

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 16 Property, Plant and Equipment
US GAAP ASC 360 Property, Plant and Equipment

❓ Frequently Asked Questions

Q: How is gain on sale of investments recorded?

A: Dr. Bank (sale proceeds), Cr. Investment (carrying amount), Cr. Gain on Investments Sale (difference).