Basic query in accounting

This query is : Resolved

pavankumar (Querist)
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19 October 2013 Investment a/c
If cost of current Investment at the year end=Rs93413 and Market value of investment at the year end=Rs Rs94050

In the above context:
Q1)Whether Difference of Rs637 will be Recognise in profit and loss a/c?If not Why?

I will be very much thankful to you.

Sanket

Sanket (Expert)
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19 October 2013 Closing value of investment is valued at cost, as it is lower than the market value.

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pavankumar

pavankumar (Querist)
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19 October 2013 Is it correct to say in the above situation that difference of Rs 637 will not recognised as profit because it is Unrealised Gain.?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 October 2013 you can recognise the profit/loss on investment only on sale of such investment, market value just indication of your investment value, unless you sell the investment the gain cannot be recognised in the books.

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