21 May 2008
mark to market means valuation of securities held, for sale in short term, on market value as on the date of balance sheet.
suppose u bought a security for rs. 100 on 1 jan and on 31 mar its value is 95, now u have to write off rs 5 in P&L to show security in b.s. at rs. 95 (market value). entry will be, debit to P&L and credit to investment a/c.
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